UPDATE: Bank of America Downgrades Plexus Corp. as Potential Positives are Discounted

In a report published Friday, Bank of America analyst Wamsi Mohan downgraded the rating on Plexus Corp. PLXS from Neutral to Underperform, and lowered the price target from $38.00 to $36.00. In the report, Bank of America noted, “We had upgraded shares of Plexus to Neutral after the loss of Juniper as a customer and shares have almost doubled from those levels. Although we admire the company's focus on delivering ROIC well above cost of capital, solid execution, and financial transparency, in our opinion shares are already discounting potential positives and with the multiple (15x C14E EPS) at the high end of historical ranges (median 12x), we see risk-reward skewed more negatively and move to an Underperform rating. We cut our estimates on a delayed ramp in margins relative to our prior expectations and our PO moves to $36.” Plexus Corp. closed on Thursday at $40.53.