Jabil Circuit (JBL) Q3 Results 'Healthy'; Remains Top Pick - Needham & Company
Needham & Company reiterated a Buy rating and $24 price target on Jabil Circuit (NYSE: JBL) following "healthy" Q3 results but below consensus August guidance.
Analyst Sean K.F. Hannan comments, "Overall, Jabil remains our top pick in EMS as it works though (what we believe to be) the final steps of its transition period that include the closure of the Nypro acquisition as well as restructuring. While the flattish August guidance is a disappointment, we remain big picture-focused as JBL looks poised for a record F14 through expanded customer relationships, a relatively larger group of new ramps, restructuring benefits and the addition of Nypro. Further, we view management’s reiteration of potential F14 EPS as a bullish sign that arguably reflects healthy conservatism. Thus, considering a multiple that has effectively troughed at 7x (and below most peers), we reiterate our Buy/$24 target on ~9x F14 EPS of $2.77."
The firm trimmed FY 2013 EPS estimate from $2.30 to $2.24 and raised FY 2014 EPS from $2.65 to $2.77.
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 $19.82 yesterday, with a 52 week range of $16.39-$23.95.
Analyst Sean K.F. Hannan comments, "Overall, Jabil remains our top pick in EMS as it works though (what we believe to be) the final steps of its transition period that include the closure of the Nypro acquisition as well as restructuring. While the flattish August guidance is a disappointment, we remain big picture-focused as JBL looks poised for a record F14 through expanded customer relationships, a relatively larger group of new ramps, restructuring benefits and the addition of Nypro. Further, we view management’s reiteration of potential F14 EPS as a bullish sign that arguably reflects healthy conservatism. Thus, considering a multiple that has effectively troughed at 7x (and below most peers), we reiterate our Buy/$24 target on ~9x F14 EPS of $2.77."
The firm trimmed FY 2013 EPS estimate from $2.30 to $2.24 and raised FY 2014 EPS from $2.65 to $2.77.
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 $19.82 yesterday, with a 52 week range of $16.39-$23.95.