Jabil Poised for Growth: AI Revenue, Strategic Expansions, and Acquisition Drive Positive Outlook

Bank of America Securities analyst Ruplu Bhattacharya reiterated a Buy rating on Jabil today and set a price target of $262.00.

Ruplu Bhattacharya has given his Buy rating due to a combination of factors that suggest Jabil is poised for growth. The company is expected to experience strong revenue from AI, although it may face temporary capacity limitations due to retrofitting its factories for liquid cooling. This retrofit is anticipated to impact the second and part of the third fiscal quarters, but management’s conservative guidance suggests potential upside to the earnings per share forecast. Despite recent stock gains, any pullback could present an attractive buying opportunity.
Looking ahead, fiscal year 2027 is anticipated to be stronger with increased revenues and margins. This is supported by the upcoming operation of a new factory in North Carolina, which could add significant annual revenue, and the development of Jabil’s facility in Croatia for drug handling. Additionally, the strategic acquisition of Hanley Energy Group is expected to enhance Jabil’s offerings in data center power solutions, contributing to higher-margin services revenue. These developments underpin Bhattacharya’s positive outlook on Jabil’s stock.

Based on the recent corporate insider activity of 114 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 JBL in relation to earlier this year.