Jabil Circuit Maintain Hold Rating at Deutsche Bank
Friday, September 23, 2021 4:08 PM

Analysts at Deutsche Bank retain Buy rating on the shares of Jabil Circuit, Inc. (NYSE: JBL) as they expect the latter’s revenue to be in-line of consensus and a modest earnings per share in its fiscal 2011 fourth quarter. Jabil Circuit is scheduled to unveil its FY2011 Q4 financial results on September 27, 2021 after the closing bell. They lower the stock’s price target to $19 from $21.

DB analysts state that for FY2012 and FY2013, they are trimming their estimates due to the slower growth environment. They add that although the stock has been volatile this quarter, but they continue to see the stock as fairly valued versus peers. They state that the August quarter was conservative at EPS of 52 cents to 60 cents per share, and sales of $4.3 billion. They add that for FY2012 Q1, they assume HVS grows 15 percent quarter-over-quarter, which is at the low end of typical patterns of 15 percent to 20 percent quarter-over-quarter and they expect Jabil to be conservative on its assumptions for growth from RIM as the customer ramps its new products. They add that during the quarter, Jabil announced that it completed its $200 million share buyback, buying back 11.5 million shares. They add that the key focus areas during the quarter will be additional buyback programs, capital expenditure plans, and other uses of cash, ability to grow DMS revenue 20 percent to 30 percent year-over-year in FY2012, operating margin leverage and customer demand trends in light of recent soft economic data.


On a year-to-date basis, Jabil Circuit has a share performance of -12.10 percent, and as compare to Standard & Poor’s 500, it has an YTD share performance of -9.09 percent.


Jabil Circuit provides electronic manufacturing services and solutions in North America, South America, Europe, and Asia. It has a market capitalization of $3.86 billion with a P/E ratio of 9.760. It has more than 218 million outstanding shares.


Shares of Jabil Circuit added 1.12 percent or 18 cents to trade at $16.26.