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

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Goldman Sachs reiterated its Neutral rating on Molex (NASDAQ: 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.

Latest Ratings for MOLX

DateFirmActionFromTo
Sep 2013William BlairDowngradesOutperformMarket Perform
Sep 2013CitigroupMaintainsNeutral
Sep 2013William BlairDowngradesOutperformMarket Perform

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Posted-In: Goldman SachsAnalyst Color Price Target Intraday Update Analyst Ratings

 

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