Ticonderoga Securities Maintains a 'Buy' on Plexus (PLXS); Raises Estimates & PT

October 29, 2009 5:58 PM EDT

Ticonderoga Securities maintains a 'Buy' on Plexus (Nasdaq: PLXS), raises price taret to $35.

Ticonderoga analyst says, "Plexus reported 4QFY09 sales of $393 million that fell short of our $405 million estimate on weaker than expected sales with Juniper Networks (Nasdaq: JNPR)(Neutral rated), while pro forma EPS of $0.38 beat our estimate of $0.32 (Street at $0.31) but benefited from lower taxes (added $0.08). The biggest disappointment in the quarter was clearly the wireline/networking (down 8% Q/Q versus our up 4% forecast) driven by Juniper Networks (17% of sales). However, improving spending trends and new ramps are driving us to project sequential sales growth in the networking market each quarter throughout fiscal 2010. The wireless infrastructure market increased by 43% sequentially in 4QFY09 and we expect growth to continue into 1QFY10."

"We are raising our fiscal 2010 revenue estimate to 1.795 billion from $1.780 billion and pro forma EPS estimate to $1.59 from $1.55. We are also increasing our fiscal 2011 revenue estimate to $2.109 billion from $2.079 billion and pro forma EPS estimate to $2.33 from $2.22. We believe Plexus' strong profit outlook and a reassuring conference call provides the necessary ammunition for the stock to move higher in the near term...Additionally, we believe Cisco's (Nasdaq: CSCO) (Buy-rated) proposed acquisition of Starent Networks (Nasdaq: STAR) (NR) presents a favorable risk/reward scenario for Plexus."

To see more analyst ratings on PLXS Click Here.

Plexus Corp., together with its subsidiaries, provides contract electronic manufacturing services to original equipment manufacturers and other technology companies in the United States, Asia, Mexico, and Europe.

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