Barclays maintains Overweight on Jabil stock with $179 target

Published 06/03/2025, 17:28
Barclays maintains Overweight on Jabil stock with $179 target

On Thursday, shares of Jabil (NYSE:JBL) maintained a favorable Overweight rating from Barclays (LON:BARC), with a consistent price target of $179.00. The endorsement comes as Jabil approaches its second fiscal quarter earnings release, scheduled for March 13. Trading at a P/E ratio of 12.9, significantly below industry averages, InvestingPro analysis indicates the stock is currently in oversold territory. Barclays’ stance on the stock is based on a belief that Jabil’s financial model for the second half of the fiscal year is relatively secure, with cautious guidance for the remainder of the year.

The firm sees potential growth drivers in Jabil’s involvement with AWS server and racks, as well as stability in the electric vehicle (EV) and renewable energy sectors. With annual revenue of $27.49 billion and a solid financial health score rated as ’GOOD’ by InvestingPro, these segments are expected to contribute positively to Jabil’s performance going forward.

Jabil’s forthcoming earnings report is anticipated with optimism by Barclays, suggesting that the company’s strategic positioning and market segments are likely to yield favorable results. The Overweight rating indicates that Barclays expects Jabil’s stock to outperform the average return of the stocks analyzed by the firm over the next 12 to 18 months.

The $179.00 price target set by Barclays suggests a level of confidence in Jabil’s ability to reach this valuation, based on the firm’s analysis and expectations of the company’s financial prospects.

Investors and market watchers will be paying close attention to Jabil’s earnings report to see if the company’s performance aligns with Barclays’ positive outlook and to gauge the potential impact on Jabil’s stock value in the near term.

In other recent news, Jabil Inc. announced a strategic partnership with Apptronik to scale the production of humanoid robots. This collaboration will see Apptronik’s Apollo robots participating in their own manufacturing at Jabil’s facilities, potentially enhancing the affordability and accessibility of humanoid robots. In another development, Jabil disclosed the outcomes of its Annual Meeting of Stockholders, where eight directors were elected, and Ernst & Young LLP was ratified as the independent auditor for the fiscal year ending August 31, 2025. Additionally, Jabil filed a prospectus supplement for the resale of up to 1,158,539 shares of its common stock, clarifying that it will not receive any proceeds from the sale.

Jabil also issued a warrant to Amazon (NASDAQ:AMZN), allowing the e-commerce giant to purchase up to 1.16 million shares, which led to a rise in Jabil’s stock price. The warrant, set at an exercise price of $137.77 per share, is tied to Amazon’s purchases of products and services from Jabil. This agreement reflects Jabil’s strategic partnerships and business relationships with industry leaders. The financial details of the transaction, including potential dilutive impacts, were not fully disclosed. These recent developments highlight Jabil’s ongoing efforts to expand its operations and maintain strong industry partnerships.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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