RBC Capital Raises Price Target on Jabil Circuit (JBL) Following 4Q Beat
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RBC Capital reiterated a Sector Perform rating on Jabil Circuit (NYSE: JBL), and raised the price target to $23.00 (from $20.00), following the company's 4Q earnings report. JBL reported revenue results of $4.43B and EPS of $0.28, which was above Street expectations of $4.27B and $0.25. Management provided Nov-qtr revenue/EPS guide that was in line with expectations at $4.8-5.0B/ $0.54-0.74 vs. Consensus at $4.87B/ $0.62.
Analyst Amit Daryanani commented, "Given increased expectations into the EPS call, we think the lack of clarity around AAPL centric revenues, specially in FY H2:17, will temper investor excitement on the name. Near-term, JBL is executing well on their core EMS segment and non-AAPL DMS business is also trending towards double-digit growth. The uncertainty remains how does the ~$4.5B of AAPL revenues do in FY17 and on that front management provided limited clarity. Fundamentally, we think JBL’s challenge remains managing the outsized volatility with their largest customer and its magnified impact on their operating income and FCF. We think JBL is doing an admirable job managing their operating model and the capital allocation discipline should be an incremental positive. Our FY17 model is modestly changed to revenues/EPS of $18.16B/$2.05 from $18.65B/$2.13, though lack of clarity around H2:17 is an issue. Maintain SP and adjusting our target to $23 from $20."
Shares of Jabil Circuit closed at $23.73 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesRBC Capital, Earnings
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