Jabil price target lowered to $130 from $135 at Stifel

Stifel lowered the firm’s price target on Jabil to $130 from $135 and keeps a Buy rating on the shares. The firm lowers estimates ahead of Jabil’s Q4 earnings report as Stifel expects the EMS provider to issue conservative guidance for FY25 given industry and company-specific revenue headwinds. The firm says its previous FY25 sales estimate of $27.6B reflected 6% organic growth, which it now believes is “too optimistic” given ongoing weakness in automotive and broader industrial markets. Its new estimate bakes in about 4% topline growth and its new EPS estimate of $8.55, down from $9.00, reflects margin pressure on the lower volumes and excess capacity. However, the firm expects revenue and EPS growth to accelerate heading into FY26, and believes “that’s where investors are focused,” the analyst added in a preview.