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On Thursday, Benchmark analysts reiterated a Buy rating and maintained a $160 price target for Plexus stock (NASDAQ: NASDAQ:PLXS), representing significant upside from the current trading price of $131.88. The decision follows recent investor meetings with Plexus CEO Todd Kelsey and CFO Pat Jermain, which reinforced confidence in the company’s growth prospects and operational strategies. According to InvestingPro data, analyst targets for the stock range from $135 to $165.
During the discussions, Plexus management expressed optimism about the company’s underlying growth drivers, despite ongoing tariff dynamics. With current revenues of $3.97 billion, the firm is aiming for a 9-12% top line expansion, supported by new program ramps and share gains. Management highlighted the company’s efforts in technology innovation to reduce costs and improve operational efficiencies, potentially enhancing operating margins to the higher end of the 6% range over time. The company currently maintains a gross profit margin of 10.1%.
The analysts noted that inventory levels are stabilizing and end demand is showing signs of improvement. These factors are expected to contribute to sustainable cash flow generation throughout business cycles. InvestingPro analysis reveals two significant strengths: a perfect Piotroski Score of 9 and an attractive free cash flow yield of 10%. The positive outlook supports Benchmark’s decision to maintain the current stock rating and price target.
The meetings with Plexus leadership provided reassurance about the company’s strategic direction and its ability to navigate external challenges. The ongoing implementation of technology innovations and operational improvements are seen as key to achieving the firm’s financial goals.
Benchmark’s reaffirmation of the Buy rating and $160 price target reflects confidence in Plexus’s ability to deliver on its growth objectives and maintain strong financial performance.
In other recent news, Plexus reported its fiscal second-quarter earnings for 2025, surpassing expectations with an earnings per share (EPS) of $1.66, compared to a forecast of $1.54. The company, however, slightly missed revenue projections, reporting $980.17 million against the expected $981.4 million. Despite this minor revenue shortfall, the company remains optimistic, projecting third-quarter revenues between $1,000 and $1,040 million, with EPS guidance set at $1.65 to $1.80. Plexus also anticipates continued sequential revenue growth into the fourth quarter, expecting to close fiscal year 2025 with non-GAAP operating margins of 6% or higher.
Needham analysts responded to these developments by lowering their price target for Plexus to $162 from the previous $172, while maintaining a Buy rating on the stock. This adjustment follows Plexus’s announcement of its fiscal second-quarter results, which were at the midpoint of the provided guidance. The company has shown strong performance in its aerospace and healthcare segments, with notable sequential revenue increases.
Plexus’s strategic investments in AI and automation have been highlighted as contributing factors to its robust profitability. The company is also focusing on expanding its operational efficiency and capacity, including plans for a new facility in Malaysia. These efforts are seen as crucial in navigating the current economic landscape and are expected to drive meaningful EPS growth for the fiscal year 2025.
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