Goldman Sachs Upgrades Sanmina (SANM) to Neutral

Goldman Sachs upgraded Sanmina (NASDAQ: SANM) from Sell to Neutral with a price target of $18.00.

Analyst Mark Delaney said, "We upgrade Sanmina to Neutral (from Sell) as the stock has pulled back by 23% since 9/1/14 (vs. the S&P down 6% and EMS peers down 16%), and it is now trading in line with our 6-month, $18 price target (which is unchanged). While we continue to see risk to Street estimates for 4QCY14 (detailed below), we believe this is now better understood by the market, and relative valuation is now fair in our view (we had been concerned that Sanmina’s P/E multiple was in line with peers despite a lower ROIC but it now trades at a 16% discount to peers on our CY15E EPS estimates; Exhibit 9). Since adding Samina to the Americas Sell List on 10/1/13, the shares are flat compared to the S&P 500 up 11%."

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 $18.08 yesterday.

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