-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target price to $101, from $94, on an EV/S multiple of 3.2x our FY 27 sales view of $7.75B. We raise our FY 26 EPS forecast to $5.46 from $4.91 and our FY 27 EPS estimate to $5.96 from $5.72. TEAM reported exceptional Q3 results, with total revenue of $1.79B surging 32% Y/Y, driven by Cloud acceleration (+29%, 300 bps faster than Q2) and Data Center (DC) revenue of $561M up 44% Y/Y (above 17% guide). Cloud strength was fueled by robust paid seat expansion, cross-sells, upgrades to its Collections, and AI solutions demand. We reiterate that AI remains a key growth driver for TEAM, as clients accelerate adoption of its tools to unlock value and move to the Cloud. Management also stressed that there are no signs of seat compression due to AI. DC benefited from its largest renewal cohort in Q3, and accounting dynamics did create an artificial boost to results. Still, the takeaway is clear - AI is positioning the firm for sustained growth. We also see strong margin expansion and improved profitability.