Sanmina price target raised to $120 from $100 at BofA

BofA raised the firm’s price target on Sanmina (SANM) to $120 from $100 and keeps a Neutral rating on the shares. The acquisition of the the data center infrastructure manufacturing business of ZT systems from AMD (AMD) is strategic, which will increase Sanmina’s scale and revs from cloud and AI, the analyst tells investors in a research note. Positives, including the communications end market coming out of an inventory correction, are balanced by on-going weak macro, a tough operating environment and program ramps needed to materialize and get to scale in the second half of the year, BofA says.