Raymond James Remains bullish on Jabil Circuit (JBL) Following 4Q Results
Raymond James reiterated an Outperform rating and $27.00 price target on Jabil Circuit (NYSE: JBL) following the company's 4Q15 earnings results.
Analyst Brian Alexander commented, "We maintain our Outperform rating on JBL and $27 price target following solid F4Q results and an unexpectedly strong 1Q and FY16 outlook. While we suspected management would maintain its FY16 targets, it raised revenue by 3% and EPS by 8% to $20 billion and $2.60, respectively. It appears that most of the guided EPS increase of $0.20 is coming from Mobility as 1Q EPS guidance alone was $0.18 above consensus and this is the peak quarter for its largest customer (Apple, 24% of FY15 revenue, up 53%). However, our sense is that growth is more broad-based (at Apple), and the diversity of capital expenditures (Fig.1) supports our view. We suspect that Jabil continues to gain market share at Apple despite concerns about emerging competition. While capex is expected to remain elevated at ~$900 million in FY16, revenue growth should exceed 10% while EPS growth exceeds 25%. Guidance could also prove to be conservative as it is more front end loaded than typical."
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Shares of Jabil Circuit closed at $19.50 yesterday.