Flex (FLEX) is issuing 5-year warrants to Amazon (AMZN), allowing Amazon to purchase up to 3.9M shares for $51.29, Raymond James tells investors. Flex shares are higher on the news, while Jabil (JBL) is under pressure, possibly reflecting concerns on shifting expectations around strategic partnerships and competitive positioning, which Raymond James views as unwarranted. While this does represent a roadmap for continued multi-year partnership with Flex, it doesn’t necessarily signal meaningful incremental revenue opportunities in the near-term, and should not be read as a negative for Jabil’s business with either “traditional” Amazon or AWS.
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Read More on FLEX:
- Flex Enters Agreement with Amazon for Equity Warrants
- Flex Approves Share Repurchase Plan at AGM
- Flex’s Strong Financial Performance and Strategic Positioning Justify Buy Rating with $58 Price Objective
- Flex price target raised to $75 from $55 at Argus
- Flex price target raised to $52 from $45 at Stifel