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Barclays (LON:BARC) raised its price target on Jabil (NYSE:JBL) to $223.00 from $206.00 on Tuesday, while maintaining an Overweight rating following the company’s earnings report. The stock, currently trading near its 52-week high with a market capitalization of $21 billion, has shown remarkable momentum with a 35% gain over the past six months. According to InvestingPro analysis, the stock appears to be trading in overbought territory.
The electronics manufacturing services provider beat analyst estimates and raised its guidance, primarily driven by strength in its Cloud and Data Center business segments.
Jabil increased its artificial intelligence revenue guidance to $8.5 billion and announced plans for a new U.S. manufacturing site to support growth in its Cloud and Data Center operations.
The company’s Electric Vehicle, Renewables, and 5G segments remain subdued, according to Barclays’ analysis of the earnings results.
Healthcare continues to be a strong performer for Jabil, standing out as a "bright spot" among the company’s various business segments.
In other recent news, Jabil Circuit Inc. reported impressive financial results for its third fiscal quarter of 2025, surpassing both earnings and revenue forecasts. The company reported an earnings per share (EPS) of $2.55, which exceeded the forecasted $2.29, and revenue reached $7.8 billion, surpassing expectations of $7.03 billion. Jabil has raised its full-year revenue guidance to approximately $29 billion, driven by strong demand in AI-related markets. The company anticipates fourth-quarter revenue between $7.1 billion and $7.8 billion, with core EPS guidance ranging from $2.64 to $3.04. Additionally, Jabil announced the opening of a new U.S. manufacturing site to support AI data center infrastructure demand, with an expected investment of approximately $500 million over the next several years. Analysts from firms like Bank of America and Goldman Sachs engaged with Jabil’s executives, discussing the company’s growth strategies and potential risks. Despite challenges in sectors like EVs and renewables, Jabil’s strategic investments in AI and manufacturing capabilities position it for continued growth.
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