This Little Known Tech Company Could See Its Stock Soar on Apple iPhone 'Super Cycle' Mania
On Tuesday after the close, Apple Inc. (AAPL) - Get Report delivered a top and bottom line earnings beat, sending shares to new all-time highs.
But there are unintended consequences for Apple's success, too. Analysts at JPMorgan initiated shares of Jabil Circuit (JBL) - Get Report with an outperform rating, assigning a $40 price target in the process. The target implies about 33% upside from JBL stock's most recent closing price of $30.42.
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However, in this case the "why" to the upgrade is intriguing. JPMorgan's Paul Coster explained that the upcoming iPhone "super cycle" should lend a big hand to Jabil's business over the next six months.
In June, Jabil also caught some positive analyst commentary based on iPhone optimism. Alongside a low valuation and strong earnings growth, Macquarie's Gus Papageorgiou assigned an outperform rating and $32.50 price target.
Of course, Apple is receiving the love Wednesday. RBC Capital boosted its price target to $176 from $168. Piper Jaffray analysts moved their price target to $190 from $158. JPMorgan went from $165 to $176. All three analysts have an outperform rating on the stock.
AAPL stock raced to new all-time highs Wednesday, opening at $159.52, while JBL stock climbed to $31 in early Wednesday morning trade, up 2%.
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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.