Goldman Comments on Negativity in Plexus (PLXS)

November 8, 2012 1:05 PM EST Send to a Friend
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Price: $39.35 -0.03%

Rating Summary:
    3 Buy, 5 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 25 | Down: 40 | New: 35
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Early this week, Plexus (Nasdaq: PLXS) announced that Juniper, the company's top customer with 16 percent of sales, is discontinuing its manufacturing partnership with the company. Commenting on the developments, analyst at Goldman Sachs said "The sudden loss of Juniper's business is concerning given Plexus's longstanding relationship with the company and the fact it has been its largest customer for years."

"We remain Neutral on the stock and expect this development to weigh on sentiment in the near term, although tangible book value of just over $18 should provide a level of support," said analyst Craig Hettenbach.

Longer term, the realignment of its business away from Juniper could ultimately be positive to its margins, added Craig Hettenbach.

Goldman Sachs maintained a Neutral rating on Plexus (NASDAQ: PLXS) and cut its price target to $22.00 (from $29.00).

For an analyst ratings summary and ratings history on Plexus click here. For more ratings news on Plexus click here.

Shares of Plexus closed at $20.51 yesterday.

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