Needham & Company Upgrades Jabil Circuit (JBL) to Buy

Needham & Company upgraded Jabil Circuit (NYSE: JBL) from Hold to Buy with a price target of $29.00.

Analyst Sean K.F. Hannan commented, "As we assess the current momentum in addition to pros/cons of JBL’s business, we are modifying our stance on shares (not a specific call on qtr) to reflect our increasing optimism and comfort regarding the model. Specifically, we believe business with AAPL is performing quite well, not only in terms of riding the successful iPhone platform but also in terms of the degree of diversification and increased wallet penetration at the OEM (beyond our prior views). We further believe that momentum in other areas of DMS (i.e., other mobile customers, Nypro) has been fairly healthy, adding both diversification and growth. While we suspect an improved FCF period seems more likely to be pushed to F17+, we are comfortable with the pace of investments and positive on top and bottom line prospects. A big picture call: we upgrade to Buy and establish a $29 PT on 12-12.5x our F16 estimate of $2.37."

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 $24.14 yesterday.

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