-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target from $86 to $156, on a P/E of 25x our FY 28 estimate, above the three-year historical average of 14x to reflect the explosive CPI growth tied to AI infrastructure and margin execution a full year ahead of schedule. After posting a strong Q4 FY 26 and blowout FY 27 guidance, we lift our FY 27 EPS from $3.90 to $4.21 and initiate FY 28's at $6.24. FLEX guided for FY 27 revenue growth of 18% Y/Y, well ahead of the consensus view of 7%, due to CPI segment guidance of 65%-75% growth. We like the strategic separation creating two distinct investment profiles, with SpinCo as a pure-play AI infrastructure growth vehicle and RemainCo as a margin-focused advanced manufacturing business. CPI's grid-to-chip integrated solution addresses critical data center power bottlenecks, underpinned by multiyear hyperscaler contracts and a fully-booked backlog supporting $10B+. While FLEX faces elevated capex in FY 27, we see continued strong cash generation providing flexibility.