Goldman Sachs Downgrades Sanmina-SCI Corp. (SANM) to Sell, Weak Margins
Tweet Send to a FriendGet Alerts SANM Hot Sheet
Price: $13.64 --0%
Rating Summary:
2 Buy, 1 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Rating Summary:
2 Buy, 1 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Trade SANM Now!
Goldman Sachs downgraded Sanmina-SCI Corp. (NASDAQ: SANM) from Neutral to Sell with a price target of $8, suggesting 6 percent downside.
The downgrade follows another disappointment in Sanmina's margins. Goldman is lowering EPS by 7% over the next two years to reflect a more elongated turnaround in component margins.
FY12 EPS goes from $0.98 to $0.97, FY13 from $1.35 to $1.29 and FY14 from $1.65 to $1.45.
"Given our view that margins drive EMS stocks, we expect SANM to lag the group
as this plays out," the analyst said. "In addition to weak demand, we think poor execution is impacting Sanmina's components business, where margins are more than 10 percentage points below printed circuit board (PCB) companies."
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 $8.48 yesterday, with a 52 week range of $6.01-$12.55.
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
The downgrade follows another disappointment in Sanmina's margins. Goldman is lowering EPS by 7% over the next two years to reflect a more elongated turnaround in component margins.
FY12 EPS goes from $0.98 to $0.97, FY13 from $1.35 to $1.29 and FY14 from $1.65 to $1.45.
"Given our view that margins drive EMS stocks, we expect SANM to lag the group
as this plays out," the analyst said. "In addition to weak demand, we think poor execution is impacting Sanmina's components business, where margins are more than 10 percentage points below printed circuit board (PCB) companies."
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 $8.48 yesterday, with a 52 week range of $6.01-$12.55.
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
- KeyBank Upgrades MDC Holdings (MDC); Cuts PulteGroup (PHM) & Ryland Group (RYL)
- Best Buy (BBY) Numbers Raised at Jefferies Post Q1
- Goldman Sachs Maintains Sell on Microsoft (MSFT)
Create E-mail Alert Related Categories
Analyst EPS Change, Analyst EPS View, Analyst PT Change, DowngradesRelated 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!
