Goldman Says Add to Positions in Jabil (JBL)
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Price: $340.00 --0%
Rating Summary:
14 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 22 | New: 3
Rating Summary:
14 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 22 | New: 3
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Jabil (NYSE: JBL) beat revenue by 2.5% in the August quarter, but missed EPS by 7% due to weaker than expected margins related to a new product ramp. Additionally, EPS guidance for the November quarter was 15% below the Street and worse than feared, noted the Goldman Sachs report.
"We are disappointed that we missed the magnitude of the negative impact the ramp of the iPhone 5 is having on Jabil’s margins," said analyst Craig Hettenbach.
"However, we think the stock can begin to work now that the company has reset margin expectations for 1H’FY13. More so, we still expect the 'sweet spot' for Jabil’s yields/margins to be reached over the next 2-3 quarters as the manufacturing process matures and volume ramps. And with the stock trading at a GAAP P/E of 9.5X and margin expansion very likely in 2H’FY13, we recommend investors add to positions," added Hettenbach.
Goldman has a Buy rating on Jabil and a reduced price target of $27 (from $28).
For an analyst ratings summary and ratings history on Jabil Circuit click here. For more ratings news on Jabil Circuit click here.
Shares of Jabil Circuit closed at $20.97 yesterday.
"We are disappointed that we missed the magnitude of the negative impact the ramp of the iPhone 5 is having on Jabil’s margins," said analyst Craig Hettenbach.
"However, we think the stock can begin to work now that the company has reset margin expectations for 1H’FY13. More so, we still expect the 'sweet spot' for Jabil’s yields/margins to be reached over the next 2-3 quarters as the manufacturing process matures and volume ramps. And with the stock trading at a GAAP P/E of 9.5X and margin expansion very likely in 2H’FY13, we recommend investors add to positions," added Hettenbach.
Goldman has a Buy rating on Jabil and a reduced price target of $27 (from $28).
For an analyst ratings summary and ratings history on Jabil Circuit click here. For more ratings news on Jabil Circuit click here.
Shares of Jabil Circuit closed at $20.97 yesterday.
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