Analysts: Jabil Circuit Inc. Too Dependent On Apple Inc.

Jabil Circuit Inc.'s

reliance on iPhones for an estimated 20 percent of its business is a key risk as Apple Inc.

moves to diversify its suppliers, analysts said Thursday. St. Petersburg, Florida-based Jabil, which posted third-quarter earnings and an outlook Thursday, changed hands recently up 2 percent to $23.11. Even as Jabil boosts spending to meet higher demand, Apple's strategy of expanding the number of its suppliers is driving similar capacity expansion at Jabil's competitors, according to Citi's James Suva, who maintained a Sell rating and $20 target. "We'd like to see signs that there is diversity in growth vectors beyond Apple," said RBC's Amit Daryanani, who reiterated a Sector Perform rating and $23 target. Deutsche Bank's Sherri Scribner noted that Jabil's top-ten customer list has recently shifted to include a new mobile customer Sony Corp.'s

mobile unit as well as General Electric Co.

. But Scribner maintained a Hold rating and $25 target, and said she wants to see Jabil "deliver on some of its pipeline" before becoming more bullish. Although the Apple exposure "continues to be a concern," Stifel's Matthew Sheerin maintained a Buy rating and said margin pressure from higher capital spending should diminish in the fiscal first quarter ending Nov. 30. Sheerin said the company is performing well while investing in growth and generating strong free cash flow.