UPDATE: Longbow Research Downgrades Plexus Corp. to Neutral, Removes PT on Valuation

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In a report published Monday, Longbow Research analyst Shawn M. Harrison downgraded the rating on
Plexus Corp.PLXS
from Buy to Neutral, and removed the $40.00 price target. In the report, Longbow Research noted, “Our conviction behind PLXS delivering improving sales and margin expansion is the greatest in the group since PLXS has to date in CY13 consistently delivered robust new program wins and margin upside, but we are downgrading PLXS to NEUTRAL from BUY with the shares up 51% from the JNPR-related 4QCY12 sell-off. We continue to see the FY14 consensus as too low reflecting higher EBIT margins entering FY14 and buyback accretion, but we are struggling in the current low-GDP growth environment to find significant upside in our CY14 model to push our prior $40 12-month target price (see fair value as $42-$43) considerably higher without stretching valuation.” Plexus Corp. closed on Friday at $39.57.
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Posted In: Analyst ColorDowngradesAnalyst RatingsLongbow ResearchShawn M. Harrison
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