UPDATE: Citigroup Raises PT to $9 on Sanmina-SCI Corporation on Higher EPS Estimates

Citigroup reiterated its Neutral rating on Sanmina-SCI Corporation

as the company missed June quarter consensus estimates, but raised its price target from $8.50 to $9 on higher EPS estimates. Citigroup said, "We maintain our Neutral rating & increase our target price to $9 from $8.50 on slightly higher EPS estimates as we were forecasting lower sales for Sanmina which the company provided upside. Given the stock's -23% year to day decline we are not surprised by the +10% after hour stock price reaction considering our & consensus sales & EPS likely both slightly increase. We are currently in Phase 2 of the EMS investment cycle & look to phase 3 when OEMs start outsourcing more or for Sanmina to show meaningful progress in its components business to potential get more positive on the shares." Sanmina-SCI Corporation closed at $7.18 on Monday.