Analysts have modestly increased Plexus’s average price target, citing robust recent results, a positive management outlook, and continued confidence in the company’s growth prospects, with new targets ranging up to $165 from previous levels around $140 to $160.
Analyst Commentary
Following the latest quarterly report, analysts have provided updated perspectives on Plexus, balancing improved outlooks with some caution regarding future risks.
Bullish Takeaways
- Bullish analysts are impressed by Plexus's strong end-of-year performance. Sales and earnings exceeded consensus expectations.
- Management’s consistent execution of strategic initiatives continues to bolster analyst confidence in the company’s ongoing growth and operational strength.
- Recent analyst meetings with the management team have further reinforced views regarding Plexus’s solid growth trajectory and fundamental expansion opportunities.
- Price targets have been revised upwards. The most optimistic projections now reach $165, reflecting increased conviction in valuation and future potential.
Bearish Takeaways
- Bearish analysts note that Plexus shares are trading near the upper end of their historical valuation range. This may limit near-term upside.
- There is cautiousness regarding macroeconomic uncertainty, prompting some to scale back long-term earnings estimates.
- Despite solid quarterly results, a more reserved outlook over the next fiscal years has led to ratings downgrades from certain neutral analysts.
- Concerns remain about the reliability of growth projections in the context of evolving economic conditions. Some analysts express a preference for cautious guidance.
What's in the News
- Evolv Technologies Holdings Inc. has entered a strategic contract manufacturing partnership with Plexus. This collaboration aims to increase production capacity, expand global reach, and achieve long-term cost savings by leveraging Plexus's international manufacturing network (Key Developments).
- Plexus has provided earnings guidance for the first quarter ending January 3, 2026, forecasting revenue between $1.050 billion and $1.090 billion. The company also projects GAAP diluted EPS of $1.40 to $1.55, which includes $0.26 of stock-based compensation expense (Key Developments).
- Between June 29 and September 27, 2025, Plexus completed a repurchase of 160,364 shares totaling $21.5 million as part of its ongoing buyback program announced in May 2025 (Key Developments).
Valuation Changes
- Fair Value remains steady at $159 per share, showing no change from prior estimates.
- Discount Rate has edged down marginally from 8.51% to 8.50%, indicating slightly less perceived risk.
- Revenue Growth projection is essentially unchanged, holding at 7.53% per year.
- Net Profit Margin expectation is flat at approximately 4.22%.
- Future P/E ratio forecast has declined slightly from 24.96x to 24.00x. This reflects a small reduction in valuation multiples.
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