Jabil Circuit (JBL) Parting Ways with BlackBerry (BBRY); Strong Buy Maintained a Needham & Company

September 26, 2013 8:34 AM EDT
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Price: $23.20 +0.56%

Rating Summary:
    7 Buy, 6 Hold, 1 Sell

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    Up: 30 | Down: 30 | New: 23
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Needham & Company analyst Sean Hannan reiterated a Strong Buy rating and $28 price target on Jabil Circuit (NYSE: JBL) on weakness following what the firm described as a "generally healthy F4Q beat." That said, the big news is the drag to the company's near-term outlook as it decides to disengage from BlackBerry (NASDAQ: BBRY). BlackBerry was the company's second largest customer in fiscal 2013.

"While clearly an immediate headwind, the loss of the volatile, lower-margin business should certainly help improve the longer-term JBL model, in our view," Hannan said about the BlackBerry news. "Thus, we encourage patient investors to not become too distracted and focus on positive momentum with AAPL, strong margin expansion opportunities in 2HF14, and healthy double-digit earnings growth potential (despite the exited biz)."

The firm trimmed FY 2014 EPS estimates from $0.82 to $0.74.

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

Shares of Jabil Circuit closed at $24.00 yesterday.

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