Ticonderoga Maintains a 'Neutral' on Plexus (PLXS); Investor Day Update
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Price: $267.41 +1.28%
Rating Summary:
8 Buy, 3 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 3 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga maintains a 'Neutral' on Plexus (NASDAQ: PLXS).
Ticonderoga analyst said, "Today, Plexus hosted its annual investor meeting in Wheeling, IL, where the company reiterated its revenue and earnings guidance for the June quarter. The commentary during the meeting focused primarily on the company's long-term roadmap to achieve its previously stated revenue target of $3 billion by FY13 and its vision to eventually achieve its long-term goal of $5 billion in annual revenues. The company highlighted its global expansion strategy, particularly in EMEA and in Asia, as a key driver to achieving its revenue targets. Plexus has clearly demonstrated its ability to deliver above-average sales growth over the past few years with leading profitability; however, we believe a slowing economic environment and a healthy valuation could keep the stock at bay."
"While Plexus reiterated the revenue and EPS outlook for the June quarter, the company highlighted increased volatility in demand forecasts from its customers, sounding less confident around demand trends for the remainder of the year. We believe that the slowing economic environment is driving increased customer caution, which could impact the company's performance. Keep in mind, Juniper Networks (Nasdaq: JNPR)(Neutral) is Plexus's largest customer and accounted for 16% of sales in the March quarter. Recall, Juniper also made cautionary comments regarding demand trends at a conference last week. That said, Plexus is focused on router programs with Juniper and is increasingly expanding into enterprise switching, and as such, we believe Juniper's (Nasdaq: JNPR) trends at Plexus remain healthy. Additionally, Plexus indicated that it expects its recapitalization initiative to contribute about $0.15 to FY12 EPS."
For more ratings news on Plexus click here and for the rating history of Plexus click here.
Shares of Plexus closed at $34.18 yesterday.
Ticonderoga analyst said, "Today, Plexus hosted its annual investor meeting in Wheeling, IL, where the company reiterated its revenue and earnings guidance for the June quarter. The commentary during the meeting focused primarily on the company's long-term roadmap to achieve its previously stated revenue target of $3 billion by FY13 and its vision to eventually achieve its long-term goal of $5 billion in annual revenues. The company highlighted its global expansion strategy, particularly in EMEA and in Asia, as a key driver to achieving its revenue targets. Plexus has clearly demonstrated its ability to deliver above-average sales growth over the past few years with leading profitability; however, we believe a slowing economic environment and a healthy valuation could keep the stock at bay."
"While Plexus reiterated the revenue and EPS outlook for the June quarter, the company highlighted increased volatility in demand forecasts from its customers, sounding less confident around demand trends for the remainder of the year. We believe that the slowing economic environment is driving increased customer caution, which could impact the company's performance. Keep in mind, Juniper Networks (Nasdaq: JNPR)(Neutral) is Plexus's largest customer and accounted for 16% of sales in the March quarter. Recall, Juniper also made cautionary comments regarding demand trends at a conference last week. That said, Plexus is focused on router programs with Juniper and is increasingly expanding into enterprise switching, and as such, we believe Juniper's (Nasdaq: JNPR) trends at Plexus remain healthy. Additionally, Plexus indicated that it expects its recapitalization initiative to contribute about $0.15 to FY12 EPS."
For more ratings news on Plexus click here and for the rating history of Plexus click here.
Shares of Plexus closed at $34.18 yesterday.
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