Market Overview

Is Jabil Circuit Too Dependent On Apple?

Share:
Related JBL
58 Biggest Movers From Yesterday
44 Stocks Moving In Wednesday's Mid-Day Session

Jabil Circuit, Inc.'s (NYSE: JBL) reliance on iPhones for an estimated 20 percent of its business is a key risk as Apple Inc. (NASDAQ: AAPL) moves to diversify its suppliers, analysts said Thursday.

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-10 customer list has recently shifted to include a new mobile customer Sony Corp.'s (NYSE: SNE) mobile unit as well as General Electric Co. (NYSE: GE).

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 November 30.

Sheerin said the company is performing well while investing in growth and generating strong free cash flow.

Latest Ratings for JBL

DateFirmActionFromTo
Nov 2018JP MorganMaintainsOverweightOverweight
Nov 2018Goldman SachsUpgradesSellNeutral
Feb 2018Standpoint ResearchUpgradesHoldBuy

View More Analyst Ratings for JBL
View the Latest Analyst Ratings

Posted-In: Amit Daryanani Citi Deutsche Bank James SuvaAnalyst Color Reiteration Analyst Ratings Trading Ideas

 

Related Articles (AAPL + JBL)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MDRXKeyBancUpgrades0.0
ANETNomuraUpgrades260.0
CNPRBC CapitalUpgrades34.0
FISVOppenheimerUpgrades88.0
FNDUBSUpgrades37.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Home Foreclosures Just Hit Their Lowest Level Since 2006

UPDATE: Ally Financial CEO Barbara Yastine To Resign