UPDATE: Bank of America Lowers PT on Jabil Circuit on Expected In-Line Quarter, Cautious Guidance

In a report published Monday, Bank of America analyst Wamsi Mohan reiterated a Buy rating on Jabil Circuit

, but slightly lowered the price target from $26.00 to $25.00. In the report, Mohan noted, “We expect JBL to report an inline Feb qtr but guide the May qtr slightly below consensus (consensus rev/EPS $4.53bn/$0.62 as of Mar 17th), given order cuts in C1Q by a large DMS customer, as per our recent checks in Asia. In our opinion, this would limit the rev and margin upside in the DMS segment for the May qtr. However, our L/T thesis remains intact: we see JBL as a multi-year beneficiary of improving mix as the faster growing DMS segment drives structural margin improvement. Given the attractive valuation and upcoming benefit from new wins, we are especially aggressive buyers on any weakness post the quarter.” Jabil Circuit closed on Friday at $19.25.