Benchmark Co. analyst David Williams maintained a Buy rating on Plexus (PLXS – Research Report) today and set a price target of $160.00.
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David Williams has given his Buy rating due to a combination of factors that highlight Plexus’s strong growth potential and operational efficiency. The management meetings with Plexus’s CEO and CFO have reinforced confidence in the company’s growth drivers and fundamental expansion, despite external challenges such as tariff dynamics. The company is on track to achieve its 9-12% top-line growth targets, supported by new program ramps and share gains, which provide additional upside opportunities.
Furthermore, Plexus is implementing technology innovations to reduce costs and enhance operational efficiencies, which are expected to improve operating margins over time. The company has consistently delivered over 6% operating margins, and there is potential for further expansion as automation and fixed cost leverage are optimized. With improving demand and inventory levels, Plexus is well-positioned for sustainable cash flow generation, supporting the positive outlook and the Buy rating with a $160 price target.
Williams covers the Technology sector, focusing on stocks such as Littelfuse, Plexus, and IonQ. According to TipRanks, Williams has an average return of 27.1% and a 50.15% success rate on recommended stocks.