UPDATE: Stifel Nicolaus Reduces PT to $26 on Jabil Circuit on Margin-Pressuring Apple Ramp

Stifel Nicolaus reiterated its Buy rating on Jabil Circuit

but lowered its price target from $29 to $26 per share. Stifel Nicolaus commented, "August-quarter sales of $4.3bn (up 2% q/q) beat our estimate by $130mn, but EPS of $0.54 missed our $0.59 estimate primarily due to margin pressure related to product ramps in Jabil's diversified manufacturing segment, where Apple is the largest customer and for whom we believe JBL supplies enclosures for the new iPhone5 as well as other upcoming mobile products. The lower yield issues are expected to pressure margins again in the November quarter before improving through the rest of FY13." Jabil Circuit closed at $20.97 on Tuesday.