Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com - BofA Securities raised its price target on Jabil (NYSE:JBL) to $245 from $225 on Thursday, maintaining a Buy rating on the stock following the company’s strong fiscal third-quarter results. The new target represents the highest among analysts, with consensus recommendations remaining strongly bullish at 1.78 (Strong Buy).
Jabil shares have gained 42% year-to-date as of June 18, prompting BofA to address investor questions about potential further upside for the stock. The firm noted it has maintained conservative forward estimates despite the strong performance. According to InvestingPro data, the stock is trading near its 52-week high of $207.09 and appears overvalued based on Fair Value analysis, though momentum remains strong with significant returns across multiple timeframes.
BofA projects Jabil’s artificial intelligence revenues will grow to $10.6 billion in fiscal 2026 and $13.3 billion in fiscal 2027, up from $8.5 billion in fiscal 2025. This represents 25% year-over-year growth for these two years, significantly lower than the 50%+ growth expected in fiscal 2025.
The firm’s model shows AI revenues increasing by $2.1 billion and $2.7 billion in fiscal 2026 and 2027 respectively, while total Jabil revenue is projected to grow by $1.7 billion and $2.8 billion in those years. For fiscal 2026, BofA assumes the company’s remaining businesses will decline year-over-year.
BofA’s revenue and earnings per share estimates for fiscal 2026 and 2027 are higher than the consensus Street expectations, with the firm acknowledging its assumption that non-AI businesses will remain flat in fiscal 2027 could prove conservative.
In other recent news, Jabil reported strong financial results for its third fiscal quarter of 2025, surpassing both earnings and revenue forecasts. The company announced an earnings per share of $2.55, exceeding the forecasted $2.29, while revenue reached $7.8 billion, surpassing expectations of $7.03 billion. Following these results, Jabil has raised its full-year revenue guidance to approximately $29 billion. Barclays (LON:BARC), BofA Securities, and UBS have all increased their price targets for Jabil, citing strong performance in AI and cloud/data center infrastructure. Barclays set a new target of $223, BofA increased theirs to $225, and UBS raised theirs to $208, highlighting Jabil’s AI-related revenue growth. Jabil’s AI-related revenue is projected to grow by over 50% in fiscal 2025, with plans for a new U.S. manufacturing site to support this growth. Despite challenges in the EV, renewables, and 5G sectors, Jabil’s healthcare segment remains a strong performer. These developments reflect Jabil’s strategic focus on AI and manufacturing capabilities, positioning the company for sustained growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.