Sanmina price target raised to $51 from $45 at BofA

BofA raised the firm’s price target on Sanmina to $51 from $45 and keeps an Underperform rating on the shares. Gross margin in Q1 benefited from a 220 basis points of sequential improvement in Components, Products and Services, or CPS, but the firm models CPS margins sequentially lower at 12% for Q2, the analyst tells investors. The firm reiterates its Underperform rating given near-term revenue challenges stemming from weak end markets and on-going inventory correction in the channel.