-- 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 by $10 to $62, based on rolling our valuation forward to our newly initiated FY 28 (Jun.) EPS estimate of $7.79, with a multiple of 8x, below AVT's three- and five-year historical averages of 9x-10x. After stronger-than-expected Mar-Q results and a positive inflection in the semiconductor distribution cycle, we increase our EPS estimates to $4.82 (from $4.55) for FY 26 and to $6.57 (from $6.09) for FY 27. We believe our multiple discount is warranted by the company's continued shift into lower-margin Asia (now 49% of sales), which creates a structural profitability headwind. This, combined with persistent industry competition and geopolitical risks, tempers our outlook. While we recognize tailwinds from AI demand and digital investments, we view the recent high-growth period and management's guidance expectation of continued outsized memory pricing growth as unsustainable, and we expect a return to a more normalized trajectory in FY 27-FY 28.