Goldman Sachs Reiterates Buy Rating on Jabil (JBL)
Goldman Sachs analyst Mark Delaney reiterated a Buy rating and $136.00 price target on Jabil (NYSE: JBL).
The analyst comments "JBL reported 4QFY24 revenue/non-GAAP EPS (ex. SBC) of $7.0 bn/$2.30, which was 6% above/$0.08 above the Street (FactSet) at $6.6 bn/$2.22. Jabil guided FY25 revenue/EBIT/core EPS to ~$27 bn/5.4%/$8.65, compared to the Street at $27 bn/5.5%/$8.64 and GS prior at $27 bn/5.6%/$8.50. We consider this a mixed report. Even though EPS results and guidance were above the Street, Jabil guided margins slightly down yoy and FY25 EBIT guidance is modestly below the Street. However, we believe that Jabil's repositioned mix of business post the Mobility divestiture is now more tied to what we expect will be more favorable end markets over the longer-term (e.g. datacenter, auto, industrial, renewables, and medical). Jabil is also investing more resources into these areas, and to that end the company commented that it has added two new hyperscale customers with its silicon photonics products. In addition, we believe that demand will eventually recover in markets that have been soft (e.g. autos, renewables) and allow for better absorption and margin expansion. Lastly, capital allocation continues to support EPS growth. We remain Buy-rated on the stock."
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Shares of Jabil closed at $122.34 yesterday.