Analyst Ruplu Bhattacharya of Bank of America Securities reiterated a Buy rating on Flex, boosting the price target to $58.00.
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Ruplu Bhattacharya has given his Buy rating due to a combination of factors that highlight Flex’s potential for growth. The company has demonstrated strong performance in its data center segment, which saw a 50% year-over-year increase in revenue in the previous fiscal year and is expected to grow by another 35% in the upcoming year. This growth in the data center sector is a significant driver for the company’s overall revenue, which is projected to increase by 1% year-over-year, despite expected declines in other markets.
Bhattacharya also notes that Flex’s strategic focus on improving its product mix, optimizing its portfolio, and enhancing margins contributes to the positive outlook. The company’s ability to manage tariffs effectively and the potential for increased manufacturing in the U.S. further support the Buy rating. Additionally, the price objective has been raised to $58, reflecting confidence in continued growth and margin improvements driven by the data center business. These factors combined suggest that Flex is well-positioned for long-term success, justifying the Buy recommendation.
In another report released on July 2, KeyBanc also reiterated a Buy rating on the stock with a $60.00 price target.
FLEX’s price has also changed moderately for the past six months – from $41.060 to $51.680, which is a 25.86% increase.