J.P. Morgan Cautious On Molex (MOLX)

J.P.Morgan Chase & Co is cautious on Molex

, after meeting with company management yesterday at the company's analysts day yesterday. It has a Underweight rating, and a $19.50 price target on shares of Molex. In the research note, J.P. Morgan writes, "Yesterday’s analyst day was highlighted by a reiteration of both FQ1 guidance and management’s goal for achieving 14% operating margins during FY-11, up from FQ4’s 11%. Near-term order trends remain healthy, and CEO Slark believes Molex can grow 1.5 to 2.0 times faster than the market on an organic basis longer term. However, he also cautioned that channel inventory fill was ending, normal seasonality could be returning, local OEM brands in China appear to have some excess inventory, and electronic component demand tends to lag semiconductor demand both to the upside and downside." Shares of Molex closed at $19.23 yesterday.