Citigroup raised its 2026 and 2027 earnings per share (EPS) forecasts for Chipone Systems by 1% and 3% respectively, to $27.68 and $37.02, but maintained its target price of $1,820. The reason for this is a valuation multiple adjustment: the bank lowered the 2027 price-to-earnings ratio used for the target price from 51x to 49x to reflect the decline in market valuations. On the operations front, Citigroup expects enterprise data and communications demand to support better-than-expected performance and outlook, and maintains its buy rating. However, the bank still lists valuation as a key risk, warning that the high-interest-rate environment could further compress the stock's valuation multiple. (Citigroup report, October 19)
