NEW YORK (AP) ¿ Shares of contract electronics manufacturers rose Friday after a Citi Investment Research analyst said he was more positive on the industry and upgraded three leading names.
Shares of Flextronics International Ltd. rose 26 cents, or 4.6 percent, to $5.90 in morning trading. Jabil Circuit Inc. was up 66 cents, or 6.8 percent, to $10.32, while Celestica Inc. rose 43 cents, or 5.3 percent, to $8.59. Sanmina-SCI Corp. rose 23 cents, or 4.8 percent, to $5.03.
All four companies assemble electronics for other major technology companies, who sell the products under their brands.
"In our view, industry fundamentals have bottomed, and we see revenue growth and margin expansion over the next 24 months," Citi's Jim Suva wrote in a note late Thursday. Inventories in the supply chain have declined during the recession, and it's time to restock them, he said.He upgraded Flextronics and Jabil Circuit to "Buy" from "Hold" and Celestica to "Hold" from "Sell."