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On Friday, Raymond (NSE:RYMD) James confirmed its Strong Buy rating for Jabil shares (NYSE:JBL), maintaining a $170.00 price target. Currently trading at $144.79, the stock has shown impressive momentum with a 26% gain over the past six months. Following Jabil’s robust financial performance in the February quarter, the research firm remains optimistic about the company’s prospects. Despite facing challenges in certain sectors such as electric vehicles and renewables, Jabil has seen growth in other areas like Intelligent Infrastructure and Connected Living/Digital Commerce, which has allowed the firm to raise its full-year guidance.According to InvestingPro, Jabil maintains a GOOD financial health score, supported by strong cash flows and consistent dividend payments for 20 consecutive years.
The positive outlook is further supported by Jabil’s recent program wins, which are expected to contribute to mid-single-digit growth targets over the long term. With revenue of $27.45 billion in the last twelve months and management actively buying back shares, Analysts at Raymond James believe that the company’s strategic mix of businesses, ongoing share buybacks, and the impact of recent restructuring efforts, which are anticipated to take effect in the second half of 2025, will significantly enhance Jabil’s profitability.
The research firm’s confidence in Jabil is also based on its position as a preferred manufacturing partner in various sectors experiencing secular growth. The analysts project that these factors will create substantial long-term value for Jabil’s shareholders. Jabil’s current trajectory suggests that the company is well-positioned to navigate near-term market fluctuations and capitalize on its strategic initiatives.Discover 12 additional exclusive insights about Jabil and access comprehensive financial analysis with InvestingPro’s detailed research report, part of their coverage of 1,400+ top US stocks.
In other recent news, Jabil Circuit Inc. reported its second-quarter earnings for fiscal year 2025, exceeding market expectations with an earnings per share (EPS) of $1.94, compared to the forecasted $1.83. The company’s revenue also surpassed predictions, reaching $6.73 billion against a forecast of $6.41 billion. Jabil continues to project robust growth in its AI-related revenue, expecting it to reach $7.5 billion for the fiscal year. The firm maintains a strong cash position with $1.6 billion and anticipates a free cash flow exceeding $1.2 billion for the year. The company remains optimistic about its performance in the AI infrastructure and healthcare sectors, despite a cautious outlook in the electric vehicles and renewable energy markets. Additionally, Jabil’s CEO emphasized their strategic positioning and adaptability in response to potential tariff impacts. These developments reflect Jabil’s continued resilience and strategic focus amid a dynamic market environment.
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