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 commented, "Plexus delivered another solid quarter, with results ahead of expectations and momentum building across its core end markets. Revenue in of $1.06B was ahead of the consensus estimates of $1.04B, up 4% QoQ and 1% YoY, while EPS of $2.14 beat by $0.27, including roughly a $0.25 tax benefit for the first quarter. Operating margin of 5.7% came in slightly below guidance midpoint, reflecting ongoing investments in new technologies, efficiencies and facilities, which is tempering near term OM expansion, but should begin to deliver healthy incremental margin improvement in 2H. The upside was driven by strength in semi cap and energy demand late in the quarter, which helped overcome a timing related program delay in A&D. The most encouraging take away from our view was the improving confidence in a return in growth toward the 9-12% longer term trajectory, supported by program wins, share gains, and continued improvement end market health. Despite a modest near-term OM headwind, we anticipate a 2nd half rebound to 6%+ as the benefits of the efficiency and automation initiatives begin to materialize, and fixed cost leverage improves."

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 $149.86 yesterday.

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