Flextronics (FLEX) PT Lifted at BofA/Merrill Lynch; Sees Higher Multiple

BofA/Merrill Lynch analyst Wamsi Mohan reiterated a Buy rating and bumped his price target on Flextronics (NASDAQ: FLEX) to $12.50 (from $11.00) after hosting CFO Chris Collier at their Technology Conference last week, citing better consistency and margins.

The analyst sees the multiple re-rating higher following: 1) after years of restructuring, components (Multek, Power Supplies) are finally profitable (and operating at margins higher than corporate average), 2) higher margin end markets seeing strong growth (Industrial, Automotive, Medical), 3) limited impact expected if Lenovo insources, and 4) management is focused on profitable growth and targeting end markets and opportunities that provide more consistent earnings.

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

Shares of Flextronics closed at $11.17 yesterday.

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