CSFB Lowers Jabil's Rating Based on Economic Realities

The sheer size and speed of the economic downturn in technology has caught investors, money managers and even analysts by surprise.

In a note to investors about Jabil Circuit (JBL Quote), an electronics manufacturing service provider, a pair of Credit Suisse First Boston analysts did just that -- admit that the slowdown's magnitude has caught them off guard.

"We believe our error has been underestimating the severity and speed of the decline in customers business not the magnitude of the trend to outsourcing," analysts Mark Hassenberg and Herve Francois wrote.

The duo dropped Jabil's near-term rating to buy from strong buy, but stressed that this move is only the result of how bad things have gotten for EMS companies, like Jabil and Celestica (CLS Quote), lately. Hassenberg and Francois both think that Jabil is a strong company, well positioned for the future. ...