Needham & Company downgraded Plexus (NASDAQ: PLXS) from Strong Buy to Buy with a price target of $38.00 (from $46.00).

Analyst Sean K.F. Hannan commented, "End market headwinds in Networking and Industrial segments continue to ripple through our EMS universe as PLXS is clearly not immune despite a healthy portfolio of ramping programs in F16. But as we look to 2HF16, we are impressed by mgmt's optimism (typically conservative) for positive revenue momentum and notable earnings improvement (aided by in-process cost actions). Further, we believe the Street does not fully appreciate the quality of new wins and the pipeline, which has a much greater mix of non-traditional segments that should act as positive driver to growth, margins, and model stability into F17 and beyond. Downgrade to Buy on lowered model, but still quite positive on long-term story."

For Dec, they now model $613M/$0.45, vs. prior $675M/$0.74. F16 now $2.6B/$2.53 vs. prior $2.86B/$3.27. Establishing F17 of $2.8M/$3.10, which may prove conservative.

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Shares of Plexus closed at $39.28 yesterday.