Needham & Company reiterated a Strong Buy rating on Plexus (NASDAQ: PLXS), and cut the price target to $46.00 (from $50.00), following 3Q15 results. Revenues of $670M and EPS of $0.69 were consistent with the pre-announcement for $670M and $0.67-0.70. consensus at the time was $686M in revenue and $0.76 EPS.

Analyst Sean Hannan commented, "While Networking challenges have emerged in the shortterm and act as the primary culprit to a temporarily disconnected cost structure (which was ramping to support prior ramp projections), we still expect healthy growth in F16 supported by a solid foundation of TTM program wins while EPS should snap-back as both leverage and efficiencies improve. Fundamentally, we still see PLXS as a very healthy business, and we further expect program win rates to accelerate from the lower F3Q result. We would take advantage of recent share pressure, owing largely in our view to more temporary speedbumps, in order to own what we believe to be the highest quality name in EMS, which should be well poised for an upswing. Reiterate Strong Buy."

Hannan also added, "F4Q guide for $650-680M (-1% q/q at mid-point) & $0.64-0.72 (incl. opt., ex-restruc.), vs. cons. of $690M and $0.76. Underlying guidance is assumption that Network/Comms weakness continues and offsets expected growth in the other segments (see following pgs for detail)."

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Shares of Plexus closed at $36.79 yesterday.