Goldman Says Add to Positions in Jabil (JBL)
Tweet Send to a FriendGet Alerts JBL Hot Sheet
Price: $19.92 +1.12%
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade JBL Now!
Jabil (NYSE: JBL) beat revenue by 2.5% in the August quarter, but missed EPS by 7% due to weaker than expected margins related to a new product ramp. Additionally, EPS guidance for the November quarter was 15% below the Street and worse than feared, noted the Goldman Sachs report.
"We are disappointed that we missed the magnitude of the negative impact the ramp of the iPhone 5 is having on Jabil’s margins," said analyst Craig Hettenbach.
"However, we think the stock can begin to work now that the company has reset margin expectations for 1H’FY13. More so, we still expect the 'sweet spot' for Jabil’s yields/margins to be reached over the next 2-3 quarters as the manufacturing process matures and volume ramps. And with the stock trading at a GAAP P/E of 9.5X and margin expansion very likely in 2H’FY13, we recommend investors add to positions," added Hettenbach.
Goldman has a Buy rating on Jabil and a reduced price target of $27 (from $28).
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 $20.97 yesterday, with a 52 week range of $15.65-$27.40.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
"We are disappointed that we missed the magnitude of the negative impact the ramp of the iPhone 5 is having on Jabil’s margins," said analyst Craig Hettenbach.
"However, we think the stock can begin to work now that the company has reset margin expectations for 1H’FY13. More so, we still expect the 'sweet spot' for Jabil’s yields/margins to be reached over the next 2-3 quarters as the manufacturing process matures and volume ramps. And with the stock trading at a GAAP P/E of 9.5X and margin expansion very likely in 2H’FY13, we recommend investors add to positions," added Hettenbach.
Goldman has a Buy rating on Jabil and a reduced price target of $27 (from $28).
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 $20.97 yesterday, with a 52 week range of $15.65-$27.40.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Maintains Bullish Stance on Walter Energy (WLT)
- UPDATE: Canaccord Genuity Starts T-Mobile US, (TMUS) at Hold
- Wells Fargo Cuts Comerica (CMA) and First Horizon National (FHN) to Underperform
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT ChangeRelated Entities
Goldman Sachs
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
