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Flextronics Stock Hits New High Amid Strong Performance and Analyst Upgrades
Flextronics International Ltd. (FLEX) has experienced a notable surge in its stock value, reaching a record high of $44.51, reflecting growing investor optimism and solid company performance. With a market capitalization of $17.26 billion, the firm showcases a P/E ratio of 19.2, attracting the interest of market analysts whose price targets for the stock range from $36.10 to $46.00. According to InvestingPro’s assessment, Flextronics holds a commendable “GOOD” financial health score, highlighting its strong position in the electronics manufacturing services sector.
The company’s impressive performance is evident in its remarkable one-year stock performance, which has seen an increase of 91.07%. This upward trajectory indicates a positive market sentiment toward Flextronics’ strategic efforts, including an assertive share buyback program and its ability to meet the rising demand for its services across diverse industries. Investors remain vigilant as the company navigates its continuing strength in an evolving market landscape.
Analyst Upgrades and Future Projections
Recent evaluations from various financial analysts have contributed to the positive outlook for Flextronics’ stock. Stifel has reiterated a Buy rating, boosting its price target to $48, citing expectations of significant revenue growth in fiscal year 2026. Similarly, BofA Securities has revised its price target to $45 while maintaining a Buy rating, driven by the company’s expanding power business sector. Craig-Hallum has also maintained its Buy recommendation with a revised price target of $45, highlighting the company’s improved operational control and profitability.
Quarterly Performance and Forecast
Flextronics recently reported its second-quarter earnings, surpassing analyst expectations with an adjusted earnings per share (EPS) of $0.64, exceeding the consensus estimate of $0.57. However, the company’s revenue of $6.5 billion fell short of the anticipated $6.53 billion, representing a 5.6% decline compared to the previous year. Looking ahead, the company has provided guidance for its third-quarter revenue, estimating figures between $6 billion and $6.4 billion, which is below Wall Street’s expectations of $6.53 billion.
Strategic Developments
In addition to its financial performance, Flextronics has made key strategic appointments and acquisitions. The company has named Kevin S. Krumm as the new Chief Financial Officer, bringing with him over 20 years of financial expertise. Moreover, Flextronics has acquired JetCool Technologies, a leader in advanced liquid cooling systems, aiming to enhance its offerings in data center solutions. These developments signify Flextronics’ commitment to innovation and strengthening its market position.
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