Sanmina Falls as Merrill Note Weighs on Sector
Sanmina (SANM) - Get Report was down 6.6% in midafternoon after the electronics manufacturing services sector was hit by negative comments from Merrill Lynch analyst Jerry Labowitz.
Citing channel checks and second-quarter sluggishness, Labowitz said it will be "difficult to achieve even
our conservative numbers
for the September and December quarters."
Labowitz downgraded five companies to intermediate-term neutral from buy, including Sanmina,
C-Mac Industries
( EMS),
Celestica
(CLS) - Get Report
,
Jabil Circuit
(JBL) - Get Report
and
Solectron
( SLR).
Flextronics
(FLEX) - Get Report
and
Plexus
(PLXS) - Get Report
were downgraded from intermediate-term neutral from accumulate.
All these stocks were struggling, with C-Mac down 8.3%, Celestica down 5.9%, JBL down 9.5%, Solectron down 8.4%, Flextronics down 7.1% and Plexus down 5.6%.