Plexus Shares Soar On Deal With Coca-Cola

WASHINGTON (AP) — Shares of Plexus Corp. rose Thursday, a day after the provider of electronics manufacturing services announced a new partnership with soft drink maker Coca-Cola Co.

Neenah, Wis.-based Plexus said Wednesday it will team with Coca-Cola to make a fountain drink dispenser that can serve more than 100 different branded sparkling and still beverages. Financial terms of the deal were not disclosed.

In afternoon trading Thursday, Plexus stock climbed $2.87, or 14 percent, to $23.37. The stock has ranged from $10.48 to $32.17 over the past year.

The deal prompted Baird analyst Reik Read to upgrade Plexus to "Outperform" from "Neutral." He also lifted his share price target from $21 to $25, and increased his fiscal 2010 earnings estimate.

"We see Plexus' new win with Coca-Cola as a strong opportunity for new business over the next several years," wrote Read in a note to clients. "In addition, Plexus has seen above-average win activity over the past five quarters and we believe conversion into revenue is improving. Plexus has also lowered its cost structure."