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In a remarkable display of market resilience, Flextronics International Ltd. (FLEX) stock has achieved a new 52-week high, with shares trading at an impressive $42.52. The company, now commanding a market capitalization of $16 billion, appears slightly overvalued according to InvestingPro Fair Value analysis. This peak represents a significant milestone for the company, reflecting a robust 1-year change with an increase of 74.3%. Investors have shown growing confidence in Flex (NASDAQ:FLEX)'s strategic direction and operational execution, which is evident in the stock's strong performance over the past year. InvestingPro analysis reveals management has been aggressively buying back shares, while the stock trades at an attractive P/E ratio relative to near-term earnings growth. The surge to this 52-week high underscores the market's optimistic outlook on the company's future growth prospects and its ability to sustain momentum in an ever-evolving industry landscape. Analysts maintain a strong buy consensus with a high price target of $46, and InvestingPro subscribers can access 11 additional exclusive insights about FLEX's potential.
In other recent news, Flextronics has been in the spotlight with several key developments. Analyst firms Stifel, BofA Securities, and Craig-Hallum have all maintained a Buy rating on Flextronics' shares, raising their price target to $48 and $45 respectively. This shift in target reflects the firms' confidence in Flextronics' growth prospects, particularly in its electronics manufacturing services.
The company's Q2 earnings exceeded analyst estimates, with adjusted earnings per share of $0.64, surpassing the consensus of $0.57. However, Flextronics' revenue of $6.5 billion fell short of expectations of $6.53 billion, marking a 5.6% year-on-year decline. The company's Q3 revenue is forecasted between $6 billion and $6.4 billion, lower than Wall Street's estimate of $6.53 billion.
In a strategic move, Flextronics acquired JetCool Technologies, a specialist in advanced liquid cooling systems, expected to enhance its data center solutions. Furthermore, the company announced the appointment of Kevin S. Krumm as its new Chief Financial Officer, bringing over two decades of financial expertise. These are recent developments for Flextronics, demonstrating the company's proactive approach to growth and profitability.
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