Sanmina-Sci: Balancing Strong Performance with Market Uncertainties Justifies Hold Rating

Analyst Ruplu Bhattacharya from Bank of America Securities reiterated a Hold rating on Sanmina-Sci (SANM – Research Report) and decreased the price target to $87.00 from $92.00.

Ruplu Bhattacharya has given his Hold rating due to a combination of factors that balance Sanmina-Sci’s recent performance with broader market conditions. The company reported strong quarterly results, with revenue at the high end of guidance and gross margins exceeding expectations, driven by demand in sectors such as Industrial, Medical, and Defense. However, challenges remain in the Automotive sector, and the macroeconomic environment continues to be weak.
Despite the positives, Bhattacharya notes that the company’s future growth is tempered by uncertainties, such as tariff impacts and a major program redesign that has been delayed. The revenue guidance for FY25 is conservative, reflecting these uncertainties. Additionally, while the long-term operating margin target is above 6%, the short-term outlook remains in the 5-6% range. These factors contribute to a cautious outlook, justifying the Hold rating.

According to TipRanks, Bhattacharya is an analyst with an average return of -1.3% and a 46.30% success rate. Bhattacharya covers the Technology sector, focusing on stocks such as Jabil, Sanmina-Sci, and Arrow Electronics.