UBS upgrades Jabil to buy on AI growth, raises estimates

Analyst
โดย Investing.com·US·Read original
Summary · why it matters

UBS upgraded Jabil to Buy from Neutral, citing stronger AI-driven demand and a more diversified business mix. The bank kept its $430 price target, implying about 28% upside, while raising its fiscal 2027 and 2028 EPS estimates to $16.78 and $20.24 from $15.89 and $18.34, respectively. UBS expects AI-related revenue to grow at least 50% in fiscal 2027 to about $20.3 billion, supported by capacity expansion in Memphis and North Carolina and growing demand from major hyperscalers including Amazon, Meta and Google. The bank also sees additional growth from the Hanley acquisition and stronger demand for data-center infrastructure, and expects operating margin to rise to about 6% in fiscal 2027 from an estimated 5.8% in fiscal 2026. UBS raised its fiscal 2027 and 2028 revenue estimates by about 6% and EPS estimates by 6% and 10%, respectively, following supply-chain checks pointing to stronger demand, with Amazon and Meta expected to contribute roughly $1 billion each in incremental revenue and a third hyperscaler, believed to be Google, providing another growth tailwind later in fiscal 2027.

Impact on stocks 5

Artificial Intelligence▲ · 3 stocks
Amazon.com Inc
AMZN
▲ PositiveDemandrelevance

UBS expects Amazon to contribute ~$1B incremental AI revenue to Jabil.

Semiconductors▲ · 1 stocks
Jabil Circuit Inc
JBL
▲ PositiveCapitalrelevance

UBS upgrades Jabil to Buy, raises EPS estimates, and sees 28% upside.

Financials▲ · 1 stocks

Theme Impact 2

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