Shares of Forgent Power Solutions (FPS +6.66%) furthered their ascent on Wednesday, following bullish analyst commentary.
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The AI boom is driving Forgent's revenue sharply higher
Forgent's fiscal fourth-quarter report, released on Tuesday, provided clear evidence of the electrical equipment maker's excellent artificial intelligence (AI)-driven expansion prospects.
Revenue was up 94% to $462 million. Bookings -- binding customer purchase orders that are expected to be converted into future sales -- grew by an even more impressive 375% to $1.5 billion. And its adjusted net income rocketed 275% to $77 million.
NYSE: FPS
Key Data Points
Wall Street sees more gains ahead for Forgent's shareholders
Multiple investment banks raised their price targets on Forgent's stock following its well-received earnings release and conference call.
KeyBanc sees Forgent shares surging more than 70% to $60, driven by new customer wins and robust demand for its electrical infrastructure offerings for data centers and power grids.
TD Cowen, meanwhile, believes Forgent's shares could rise as much as 118% to $76, fueled by its rapidly growing order backlog, which increased by 256% to $3 billion.
TD Cowen thinks Forgent is on the cusp of inking a major deal with a hyperscaler or other large data center operator, which could help to drive its stock price to new heights.
