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Jabil Circuit (JBL) Still Solid; No Problem With Apple (AAPL) Biz - Needham & Company

March 21, 2013 12:40 PM EDT Send to a Friend
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Price: $21.20 +1.19%

Rating Summary:
    6 Buy, 3 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 8 | New: 22
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Jabil Circuit (NYSE: JBL) is down 5 percent Thursday following second quarter results and guidance that were below the Street's estimates. However, analysts at Needham & Company are not throwing in the towel and have reiterated a Buy rating on the stock.

Analyst Sean Hannan does not view the challenging guidance reflective of material problems within its business, and especially not with Apple (NASDAQ: AAPL) despite what some bears may suggest. "Rather, we believe JBL is working through a challenging macro backdrop that has hampered growth and created a few hiccups to earnings, some of which are more timing related (i.e., product transitions)," he said.

He continued, "Overall, we still view JBL as a solid fundamental name within EMS that is about to enhance its model with the pending Nypro deal, while legacy business looks well poised for more meaningful growth once markets return (not currently factored into our model)."

The cut FY13 EPS from $2.13 to $1.96 and FY14 from $2.46 to $2.34. The price target was cut from $25 to $24.

NOTE: Apple accounted for 13% of 2012 revenues, Cisco (NASDAQ: CSCO) was 10% and BlackBerry (NASDAQ: BBRY) was 10%.

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 $19.48 yesterday.




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