Skip to main content
Publish date:

Plexus Rises on Upgrade

The electronics manufacturing services company forecasts full-year revenue growth of 15% to 18%.
Author:

Plexus

(PLXS) - Get Plexus Corp. Report

shares rose Monday after an analyst raised his rating to buy in anticipation of a strong quarter.

Shares of the Neenah, Wis.-based electronics manufacturing services company recently added 6.9%, or $1.46, to $22.62. Longbow analyst Shawn Harrison instituted a target price of $28.

An

uninspiring sales outlook sent Plexus into a summer slump, and shares have been oversold, Harrison wrote in a Monday note. Plexus shares are trading at a discount to its EMS peers and represent a buying opportunity for investors.

"We anticipate that sales in fiscal year 2007 will grow 15.4%, even after accounting for a potential decline in sales to a large unnamed defense customer," Harrison wrote. His firm does not have a banking relationship with Plexus.

TheStreet Recommends

Harrison says that management expects 15% to 18% sales growth for the full year 2007. His estimate of 15.4% revenue growth rate totals $1.68 billion in sales.

For its fourth quarter, Thomson First Call analysts peg Plexus to earn 48 cents a share on sales of $397.8 million. Consensus forecasts an EPS of $1.72 and $1.46 billion in revenue.

Harrison also noted that Plexus executives say the company's relationship with

Juniper Networks

(JNPR) - Get Juniper Networks, Inc. Report

is solid. The networking company is Plexus' largest customer and accounted for 19% in sales at the end of the June quarter.

Plexus is scheduled to report its fourth-quarter and full-year earnings on Nov. 1 after the market closes.