PLXS: Shares Will Likely Trade Steadily As Execution Offsets Macro Caution

Analysts have modestly increased their Plexus price target to approximately $159 per share. This reflects confidence in the company’s robust execution and long term growth prospects, despite a more cautious stance on the macro environment and valuation.

Analyst Commentary

Recent Street research reflects a mixed but generally constructive stance on Plexus, with analysts weighing solid execution and improving fundamentals against a more uncertain macro environment and a full valuation.

Bullish Takeaways

• Bullish analysts highlight Plexus's strong Q4 performance, noting that sales and earnings exceeded expectations and underscored consistent operational execution.
• Several firms point to recent management meetings as reinforcing confidence in Plexus's long term growth trajectory and the potential for continued fundamental expansion.
• Positive revisions to price targets into the mid 150s to mid 160s are framed as recognition of both the quality of execution and the durability of the company’s strategic initiatives.
• Despite macro uncertainty, bullish analysts suggest Plexus is positioned to outgrow end markets over time, supporting a premium to historical valuation ranges.

Bearish Takeaways

• Bearish analysts emphasize that shares are trading near the upper end of historical valuation ranges, limiting upside even with solid execution.
• There is a growing focus on macro volatility, with some firms scaling back out year estimates to reflect a more cautious demand backdrop.
• Concerns persist that management’s own commentary on the environment signals potential moderation in growth, tempering enthusiasm for aggressive multiple expansion.
• As a result, some ratings have shifted to more neutral stances, with price targets clustered around current levels, reflecting a view that much of the near term good news is already priced in.

What's in the News

• Evolv Technologies enters a strategic contract manufacturing partnership with Plexus, leveraging Plexus design, supply chain, and global manufacturing capabilities to support Evolv's next phase of growth, capacity expansion, and cost savings (client announcement).
• The partnership with Evolv provides Plexus with incremental production volume tied to security screening products and enhances Plexus exposure to global expansion opportunities through its international production network (client announcement).
• Plexus issues fiscal first quarter 2026 guidance, projecting revenue of $1.050 billion to $1.090 billion and GAAP diluted EPS of $1.40 to $1.55, including $0.26 of stock based compensation expense (corporate guidance).
• Plexus completes a share repurchase tranche, buying back 160,364 shares, or 0.59% of shares outstanding, for $21.5 million under the previously announced May 14, 2025 buyback program (buyback update).

Valuation Changes

• The fair value estimate is unchanged at approximately $159.00 per share, indicating no material revision to the intrinsic value assessment.
• The discount rate has risen slightly from 8.50% to about 8.52%, reflecting a modest increase in the required return or perceived risk profile.
• Revenue growth is effectively unchanged at roughly 7.53% per year, suggesting stable expectations for top line expansion.
• The net profit margin is essentially flat at about 4.22%, indicating no meaningful adjustment to long term profitability assumptions.
• The future P/E has risen marginally from about 24.00x to 24.01x, implying a slightly higher multiple applied to forward earnings in the valuation framework.