Analysts See Up To 57% Upside In Jabil Post Q4 Earnings - Read Why

  • Analysts hailed Jabil Inc's JBL Q4 earnings results by raising their price targets.
  • Stifel analyst Matthew Sheerin upgraded from Hold to Buy and raised the PT from $63 to $68, implying an 18.8% upside.
  • Sheerin sees the pullback in shares following what he calls "a solid quarter and outlook" as a buying opportunity, especially in light of Jabil's "robust outlook" for 8% topline growth, continued margin expansion, and about $6.35 in adjusted EPS for FY22. 
  • Programs in higher-margin end markets where Jabil has made significant investments, including autos, healthcare, industrial, and cloud, are driving that growth, noted Sheerin.
  • Sheerin thinks the stock's current multiple "gives the company no credit for significant progress in diversifying its business, expanding margins and generating cash."
  • Raymond James analyst Adam Tindle maintained a Strong Buy and raised the PT from $66 to $70, indicating a 22.3% upside.
  • Citi analyst Jim Suva raised the PT to $90 from $80, suggesting a 57.3% upside, and affirmed a Buy. 
  • Suva says the "rare" sales miss by Jabil is "understandable given the component supply chain shortages that companies have widely discussed." 
  • Despite this, Suva notes that the company is guiding the November quarter inline and its FY22 earnings to be 6% above consensus. 
  • Suva views the post-earnings selloff as a buying opportunity.
  • Price Action: JBL shares traded higher by 2.32% at $58.56 on the last check Thursday.
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