Benchmark Reiterates Buy Rating on Plexus (PLXS)

Benchmark analyst David Williams reiterated a Buy rating and $165.00 price target on Plexus (NASDAQ: PLXS).

The analyst said, "PLXS delivered F1Q25 revenue that was modestly below expectations (-0.6%) with EPS beating consensus by a wide margin (8.7% or $0.15) on better-than-expected GM, OM, OpEx, and taxes. However, the tempered 2Q outlook fell short on the top and bottom line, driven by volatility within market sectors. Industrial appears to be the culprit in the guidance miss, which is anticipated to be down high single to low double digits QoQ with continued strength in SemiCap unable to offset weakness from the broader Industrial sector. Each of the other two sectors are guided to be up high single digits QoQ. For 1Q, A&D was below forecast with the delayed restart at Boeing, coupled with a Defense related program push out, which weighed on the segment. Demand softness developed in HC/LS but is expected to rebound in 2Q with new program ramps supporting growth. Industrial came in ahead of expectations on near-term strength from multiple customers. On the fundamental side, we are encouraged by the GM and OM sustainability with continued strong FCF generation. Operationally, new programs wins remain solid as the company continues to execute well against an uneven demand recovery across its diverse end market exposure."

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

Shares of Plexus closed at $170.49 yesterday.

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