Analyst Ruplu Bhattacharya from Bank of America Securities reiterated a Buy rating on Flex and keeping the price target at $58.00.
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Ruplu Bhattacharya has given his Buy rating due to a combination of factors that highlight the strategic advantages and growth potential for Flex. The issuance of a warrant to Amazon, allowing them to purchase a significant number of Flex shares, underscores the strength and importance of their long-term partnership. This move indicates Amazon’s confidence in Flex’s capabilities and suggests that Flex is well-positioned to benefit from the ongoing demand for cloud and data center equipment, particularly from major players like Amazon.
Furthermore, Bhattacharya views this partnership as a catalyst for Flex’s future revenue growth, potentially exceeding previous growth forecasts. The agreement is expected to enhance Flex’s revenue mix and margins, contributing positively to earnings per share in the long term. The analyst maintains a price objective of $58, supported by expectations of portfolio optimization, margin expansion, and capital returns, reinforcing the Buy rating.
According to TipRanks, Bhattacharya is a 3-star analyst with an average return of 4.3% and a 55.20% success rate. Bhattacharya covers the Technology sector, focusing on stocks such as Flex, Sanmina-Sci, and Concentrix.