Flex price target raised to $50 from $44 at KeyBanc

KeyBanc raised the firm’s price target on Flex (FLEX) to $50 from $44 and keeps an Overweight rating on the shares. The firm thinks Flex’s “grid-to-chip” strategy has built a differentiated data center business relative to peers, which includes core EMS cloud compute capabilities where the company is accelerating deployment at scale via vertical integration in conjunction with Flex-owned IP for power products. Additionally, KeyBanc thinks Flex will continue to invest in its Data Center business both organically and inorganically and will work to shift the rest of its portfolio to higher growth, higher margin opportunities. The firm acknowledges it’s difficult to know what the “right” multiple is for Flex, but it is optimistic the data center theme will remain top of mind for investors and is confident this management team will continue transforming the business and driving shareholder value.