Needham & Company Reiterates Buy on Plexus Corp (PLXS) Following 1Q Results

Needham & Company reiterated a Buy rating and $38.00 price target on Plexus (NASDAQ: PLXS) following the company's 1Q earnings report. Revenues of $617M and EPS of $0.47 vs. prior guide of $600-625M and $0.41-0.48 vs. consensus $610M and $0.45.

Analyst Sean Hannan commented, "PLXS delivered a solid December quarter and guidance that beat the emerging estimated numbers in recent weeks as broader sentiments have soured. As we step back, we consider a number of important positive new/updated themes coming out of the call: (1) incremental strengthening in Industrial provides an opportunity for upside in F16 and healthy foundation into F17; (2) cost efforts are ahead of plan and should enable target margins by F4Q; (3) new program wins and record pipeline continue to provide optimism; (4) forecasts from customers have been quite stable since entering F16; (5) planned program disengagements proceeding well; (6) Healthcare lining up for strong F17. Consequently, we come away incrementally positive on PLXS as it navigates the sluggish end market environment with healthy execution. Reiterate Buy."

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 $33.38 yesterday.

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