UBS Assumes, Downgrades Jabil Circuit (JBL) to Neutral

UBS downgraded Jabil Circuit (NYSE: JBL) from Buy to Neutral with a price target of $21.00 (from $25.00) in assumed coverage. The analyst notes an encouraging outlook, but prefers FLEX (which was upgraded).

Analyst Steven Milunovich commented, "We assume coverage of Jabil with a Neutral rating and price target of $21 (previously Buy and target of $25). The company is on the rebound, benefiting from its Apple relationship and investment in healthcare with the acquisition of Nypro. Jabil has twice increased its capex for F15, and we assume above-average capex in F16 as well. Still, the company expects at least $2.40 per share in non-GAAP EPS in F16. We rate the stock Neutral because we are a bit more conservative at $2.35, worry about dependence on Apple, and view Flex as somewhat better positioned.

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 $19.64 yesterday.

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