J.P. Morgan analyst Samik Chatterjee has maintained their bullish stance on FLEX stock, giving a Buy rating yesterday.
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Samik Chatterjee has given his Buy rating due to a combination of factors including Flex’s strategic multi-year agreement with Amazon. This partnership is expected to diversify Flex’s hyperscale exposure and drive significant revenue growth, with shipments anticipated to begin in FY27. The agreement is projected to enhance Flex’s data center business, potentially exceeding the prior long-term guidance of 20% revenue growth through FY29, and is expected to be accretive to corporate margins.
Moreover, the issuance of warrants to Amazon, allowing them to purchase shares, underscores the potential for Amazon to become a significant customer, potentially contributing over 10% to Flex’s revenues. This development is likely to improve Flex’s market positioning and investor perception, as it aligns with the company’s strategy to leverage EMS partners and diversify its supplier base. The anticipated growth and improved margins could lead to a re-rating of Flex’s shares, making it an attractive investment opportunity.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $55.00 price target.