Needham & Company Reiterates a 'Buy' on Sanmina-SCI (SANM); Adjusting Estimates Ahead Of Reports, Considering Spotty Demand Environment

Needham & Company reiterates a 'Buy' on Sanmina-SCI Corp. (NASDAQ: SANM) price target lowered $1 to $15.

Needham analyst says, "Overall, SANM has been improving its model from an operational and a leverage standpoint (i.e., through its recent refinancing). While some softness may be materializing in the broader environment, we believe new program wins in areas such as Medical can help to provide a platform for growth in a sluggish environment while incremental headwinds in (highmargin) military business appear unlikely and Communications headwinds on legacy platforms could be limited, in our view. With shares trading at <5x F12 consensus of $1.76, we believe shares are undervalued (even considering a less-than-stellar execution record)."

"Our F4Q est. remains $1.675B & $0.42. F1Q now $1.675B & $0.41 vs. our prior $1.70B & $0.46. Pairing back F12 to $6.8B & $1.66 from $7.0B & $1.91. We view forward estimates to now be conservative."

For more ratings news on Sanmina-SCI Corp. click here and for the rating history of Sanmina-SCI Corp. click here.

Shares of Sanmina-SCI Corp. closed at $8.74 yesterday.

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