Argus cuts Jabil to Hold amid weakening end markets

As previously reported, Argus analyst Jim Kelleher downgraded Jabil to Hold from Buy. The company’s completed divestiture of its low-margin mobility business to BYD Electronic will make Jabil smaller but more profitable, though while that transition is playing out as anticipated, its key end markets are weakening more than anticipated and appear unlikely to recover in FY24, the analyst tells investors in a research note. Argus adds however that beyond the near-term, Jabil appears well positioned for FY25 amid expanding and fast-growing opportunities in vehicle electrification, conncted healthcare, AI data center infrastructure, and core businesses.