UPDATE: Goldman Sachs Cuts PT to $27.50 on Molex on Weak Gross Margins

Goldman Sachs reiterated its Neutral rating on Molex MOLX and cut its price target from $28 to $27.50 Goldman Sachs commented, "We continue to rate shares of MOLX Neutral. With the stock already trading at a premium to the market (P/E of 15X vs. S&P at 13X), we think an improvement in gross margins will be necessary to drive outperformance from here. Molex's revenue guidance for 3.5% sequential growth is bucking the trend of most companies in the tech supply chain that are guiding for a sequential decline, helped by new products for smartphones and tablets and to a lesser extent autos. However, gross margin for these products is below the corporate average, leading the company to guide EPS around 10% below the Street even on better sales." Molex closed at $26.65 on Tuesday.