Sanmina-Sci: Balancing Growth Opportunities and Market Uncertainties with a Hold Rating

Bank of America Securities analyst Ruplu Bhattacharya maintained a Hold rating on Sanmina-Sci (SANM – Research Report) yesterday and set a price target of $92.00.

Ruplu Bhattacharya’s rating is based on a combination of factors that reflect both opportunities and challenges for Sanmina-Sci. The company is focused on profitable growth, with management emphasizing high-complexity manufacturing and expecting revenue growth in the high single digits year-over-year. Despite this positive outlook, the overall macroeconomic environment remains uncertain, and the company faces a tough operating landscape, particularly in its communications end market.
Sanmina-Sci’s diversified end markets present both potential upsides and risks. While the communications and cloud segments contribute significantly to revenue, the company is still in the early stages of ramping up its cloud business. Additionally, the industrial and automotive sectors offer growth opportunities, particularly in the electric vehicle space. However, the semiconductor capital equipment market is expected to remain weak. Given these mixed signals, Bhattacharya maintains a Hold rating, balancing the potential for growth with the existing market uncertainties.

Based on the recent corporate insider activity of 43 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 SANM in relation to earlier this year.