Barclays Reiterates Overweight Rating on Jabil (JBL), PT $184, 'Underappreciated Optical Assets'

Barclays analyst George Wang reiterated an Overweight rating and $184.00 price target on Jabil (NYSE: JBL).

The analyst comments "Our takes: JBL acquired Intel’s transceiver manufacturing assets in late 2023 and entered the 400G/800G transceiver market. Meta is the biggest transceiver customer for JBL, which supplies 400G transceivers to Meta. AWS is the second hyperscale customer for JBL. JBL has been in qualification discussions with Meta/AWS/NVDA for 800G and 1.6T pluggable transceivers. We estimate $300M-$400M total optical revenues for JBL currently, which could grow to $1B in the next couple of years. JBL is partnering with MaxLinear, which provides PAM4 DSP for JBL. Besides selling directly to hyperscalers, JBL could be a new competitor to FN if JBL successfully gets qualified by NVDA for 800G and 1.6T modules. JBL also talks about being well positioned to assemble CPO by leveraging its optics assets and growing capacity in SiPho, providing PICs (optical engines) and embedded lasers. JBL could articulate its laser content based on SiPho and related value propositions, relative to traditional EMLs in the marketplace today."

For an analyst ratings summary and ratings history on Jabil click here. For more ratings news on Jabil click here.

Shares of Jabil closed at $136.07 yesterday.

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