Jabil Circuit Ests Lowered
We maintain our Hold rating on the shares of Jabil Circuit, Inc. (JBL - Analyst Report). Although Jabil has been showing signs of improvement from restructuring activities, the near-term risks of a slowing end-market remain. Moreover, the company's restructuring efforts are expected to impede margins.
Jabil reported a soft first quarter of 2009, hit by the deteriorating economic conditions. The company provided a cautious guidance for its second quarter, well below consensus expectations. We have therefore lowered our estimates for the second quarter of 2009 as well as for the full year 2009. However, given improvements in JBL's operations and new business wins, we do believe that the stock should trade in-line with the industry median.
The company is currently trading at a P/E ratio of 8.1x our reduced 2009 EPS estimate of $0.81, a discount to its industry mean. Our reduced target price of $7.00 reflects a multiple of 8.7x our reduced 2009 EPS.
Priyanka Poddar contributed to the report.
Read the full analyst report on JBL
|
|
|
Share |
RSS |
Rate Pos |
Rate Neg |
Comment |
|
|
||||||
Loading Stories...Most Popular on Zacks.com
More Zacks Resources
Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.
Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.
Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.
My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.
More Zacks Links
| Market Summary | Nov 08, 2009 05:21 am ET |
Sponsored Links


Sponsored Links 
0.35 %

[CLICK TO CLOSE X]