Ruplu Bhattacharya, an analyst from Bank of America Securities, reiterated the Buy rating on Flex (FLEX – Research Report). The associated price target is $48.00.
Ruplu Bhattacharya has given his Buy rating due to a combination of factors including Flex’s strong financial performance and strategic initiatives. The company has demonstrated robust revenue growth in its data center segment, with expectations to reach $6.5 billion in fiscal year 2026, marking a significant year-over-year increase. Additionally, Flex’s operating margin is projected to exceed 6%, achieving this milestone a year ahead of schedule, which reflects effective management under CEO Advaithi.
Another factor contributing to the Buy rating is the company’s focus on margin growth and portfolio optimization. The increase in customer-sourced inventory, particularly in the Cloud business, is expected to enhance margins despite reducing total revenue. Moreover, Flex’s guidance for fiscal year 2026 is considered prudent amidst macroeconomic uncertainties, with potential revenue upside if market demand recovers faster than anticipated. These elements, along with strategic capital returns, support the positive outlook for Flex’s stock.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $50.00 price target.
Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FLEX in relation to earlier this year.