Collins Stewart Starts Plexus (PLXS) at Hold, $30 Price Target
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Price: $255.94 -7%
Rating Summary:
7 Buy, 4 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 24 | New: 82
Rating Summary:
7 Buy, 4 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 24 | New: 82
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Collins Stewart initiates coverage on shares of Plexus (NASDAQ: PLXS) with a Hold rating and $30 price target.
The company has a strongly positioned in the faster-growing, higher-margin Aerospace, Auto, Industrial, Instrumentation, Medical, Military markets. These markets make up 55 percent of the company's revenue. The firm forecasts 33 percent revenue growth in 2011.
Competition in the markets are on the rise as the demand is obvious to everyone. PLXS recently discussed increasing customer forecast risk and reduced visibility, which could hamper 2H CY11 & FY12 revenue growth.
While the company is currently pursuing plant expansions in Malaysia, China & Romania. An analyst from Collins Stewart comments, "these are important investments in future growth, but Europe has historically proven to be a challenging geography for EMS providers. If revenue growth does not ramp as quickly as expected, the normal OM pressure associated with ramping new facilities could be worse and last longer than expected & impact investor willingness to pay up for growth."
For more ratings news on Plexus click here and for the rating history of Plexus click here.
Shares of Plexus closed at $30.71 yesterday.
The company has a strongly positioned in the faster-growing, higher-margin Aerospace, Auto, Industrial, Instrumentation, Medical, Military markets. These markets make up 55 percent of the company's revenue. The firm forecasts 33 percent revenue growth in 2011.
Competition in the markets are on the rise as the demand is obvious to everyone. PLXS recently discussed increasing customer forecast risk and reduced visibility, which could hamper 2H CY11 & FY12 revenue growth.
While the company is currently pursuing plant expansions in Malaysia, China & Romania. An analyst from Collins Stewart comments, "these are important investments in future growth, but Europe has historically proven to be a challenging geography for EMS providers. If revenue growth does not ramp as quickly as expected, the normal OM pressure associated with ramping new facilities could be worse and last longer than expected & impact investor willingness to pay up for growth."
For more ratings news on Plexus click here and for the rating history of Plexus click here.
Shares of Plexus closed at $30.71 yesterday.
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