Analyst David Williams from Benchmark Co. maintained a Buy rating on Plexus and increased the price target to $165.00 from $160.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
David Williams has given his Buy rating due to a combination of factors including Plexus’s strong financial performance and growth prospects. The company reported solid fourth-quarter results, with revenue surpassing consensus estimates by approximately 1% and earnings per share exceeding expectations by around 15%, largely due to a favorable tax benefit. Despite mixed guidance, the company anticipates accelerated growth in the upcoming year, aiming for a 9-12% growth target, driven by strong performance in the industrial sector and improvements in healthcare.
Additionally, Plexus’s manufacturing pipeline has shown significant growth, with a $72 million increase quarter-over-quarter and a 6% rise year-over-year. The addition of 28 new programs, expected to generate $230 million in lifetime revenue, further supports the company’s growth trajectory. Record wins in sustaining services are projected to enhance margins, contributing significantly above the corporate average. These factors, combined with improved free cash flow and return on invested capital, underpin the positive outlook and Buy rating.
Williams covers the Technology sector, focusing on stocks such as Plexus, Maxlinear, and D-Wave Quantum. According to TipRanks, Williams has an average return of 38.2% and a 56.47% success rate on recommended stocks.
In another report released on October 16, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $171.00 price target.