James Ricchiuti, an analyst from Needham, reiterated the Buy rating on Plexus. The associated price target was lowered to $158.00.
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James Ricchiuti has given his Buy rating due to a combination of factors including Plexus’s strong financial performance and promising future outlook. The company’s earnings per share (EPS) exceeded expectations, benefiting from robust gross and operating margins, as well as reduced interest expenses and a favorable tax rate. Additionally, Plexus demonstrated better-than-expected free cash flow, with projections indicating continued strong cash flow generation in the upcoming quarter.
Moreover, Plexus’s revenue growth was consistent with market expectations, showing a 6% year-over-year increase. Although there was a slight slowdown in the Health Care/Life Sciences sector, the demand in key verticals such as industrial, aerospace and defense, and semiconductor capital equipment remains solid. This positive demand outlook, along with the company’s strong financial metrics, supports the Buy rating as Plexus is well-positioned for future growth.
Ricchiuti covers the Technology sector, focusing on stocks such as Cognex, Faro Technologies, and Plexus. According to TipRanks, Ricchiuti has an average return of 9.3% and a 52.32% success rate on recommended stocks.