Deutsche Bank Cuts Price Target on Jabil Circuit (JBL) Following 2Q Miss

Deutsche Bank maintained a Hold rating on Jabil Circuit (NYSE: JBL), and cut the price target to $21.00 (from $25.00), following the company's 2Q earnings report. JBL reported sales of $4.4B and EPS ex-options of $0.57 lower than the Street at $4.5B/$0.60. Weakness in the mobility business drove the miss and JBL saw an accelerated decline in this business in the first month of F3Q-16.

Analyst Sherri Scribner commented, "JBL's F2Q-16 results missed Street estimates driven by a slowdown in mobility
sales which started in late Jan and accelerated in Feb and March. Apple is JBL's largest customer (24% of sales), and FY-16 guidance implies sales declines in mobility over the next 2 Qs. While most of the bad news was related to mobility, mgmt also trimmed its FY-16 outlook for EM, now expecting more modest growth of 2% Y/Y in this segment. We continue to view JBL's high exposure to Apple as a risk, and expect non-Apple sales to see only modest growth. With risk/reward balanced at current valuations, we maintain our Hold rating."

For an analyst ratings summary and ratings history on Jabil Circuit click here. For more ratings news on Jabil Circuit click here.

Shares of Jabil Circuit closed at $21.96 yesterday.

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