After Flex (FLEX) issued Amazon (AMZN) a warrant to purchase up to an aggregate of 3.86M ordinary shares at an exercise price of $51.29 per share, BofA argues that this shows that Amazon values the long-term partnership, that Flex is able to maintain relationships with hyperscalers beyond its largest customer, and that cloud and datacenter equipment demand remains strong. The warrant issuance also likely shows that, in the long-term, Flex’s data center revenues can grow faster than management’s prior 20% compound annual growth rate guidance, according to the analyst, who reiterates a Buy rating and $58 price target on Flex shares.
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