Needham & Company Raises Price Target on Sanmina (SANM) 4Q EPS Beat

Needham & Company reiterated a Buy rating on Sanmina-SCI Corp. (NASDAQ: SANM), and raised the price target to $33.00 (from $32.00), following the company's 4Q earnings report. SANM reported revenue of $1.67B, within the guidance range of $1.625-1.675B, but missed consensus of $1.71B. Non-GAAP EPS of $0.72 was above the midpoint of the prior $0.64-0.68 range and the Street's $0.67. September guidance calls for $1.675-1.725B and non-GAAP EPS of $0.65-0.70, compared to consensus of $1.66B/$0.66.

Analyst Sean Hannan commented, "As evidenced by a healthy F4Q beat and solid guidance, SANM continues to demonstrate its strategy, win momentum, and overall execution is working. Similar to prior quarters, momentum in non-traditional mix as well as Optical continue to drive positive results while further momentum is expected in the medium term. We also remain positive on further leverage opportunities on the company's opex base, which should drive margin expansion when combined with improving mix. Despite some investors attempting to call a "top", we see nothing but further strengthening in shares in the medium/long-term and view current valuation (~10x our F17) as attractive. Reiterate Buy."

For an analyst ratings summary and ratings history on Sanmina-SCI Corp. click here. For more ratings news on Sanmina-SCI Corp. click here.

Shares of Sanmina-SCI Corp. closed at $28.10 yesterday.

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