Plexus stock rating reiterated at Outperform by Raymond James

Investing.com - Raymond (NSE:RYMD) James has reiterated an Outperform rating on Plexus (NASDAQ:PLXS) with a price target of $165.00 following the company’s June quarter results. The stock, currently trading at $118.29, has seen a significant 12.24% decline over the past week, with InvestingPro data indicating oversold conditions.

The investment firm noted that despite ongoing macro headwinds and mixed performance across end markets, Plexus has maintained a disciplined approach to capital returns and shareholder value. This is reflected in the company’s impressive perfect Piotroski Score of 9 and strong free cash flow yield of 11%, according to InvestingPro analysis.

Raymond James expressed that the market reaction to Plexus’s quarterly results appeared excessive, suggesting that any weakness in the stock price presents a buying opportunity.

The firm highlighted Plexus’s growing portfolio of engineering and manufacturing wins, which are predominantly in less volatile end markets compared to the company’s peers.

Raymond James also pointed to Plexus’s strong margin profile and cash returns as factors that continue to drive shareholder value.

In other recent news, Plexus reported its fiscal third-quarter 2025 results, revealing earnings per share of $1.90, which surpassed analyst expectations of $1.71. The earnings beat was largely due to reduced interest expenses and a favorable tax adjustment. However, the company’s revenue came in at $1.018 billion, slightly below the anticipated $1.02 billion. Despite the positive earnings results, Stifel has adjusted its price target for Plexus, lowering it from $145 to $140 while maintaining a Hold rating. This adjustment reflects a mixed outlook for the company. Investors seem concerned about revenue and future growth, as evidenced by the stock’s decline following the earnings announcement. These developments indicate a cautious approach from analysts regarding Plexus’s future performance.

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