Update shared on05 Sep 2025
Analysts view Sanmina’s acquisition of ZT Systems’ data center business and an improving revenue mix in cloud and AI as strategic positives balanced by macroeconomic headwinds and execution risks, resulting in no change to the consensus analyst price target, which remains at $119.50.
Analyst Commentary
- Acquisition of ZT Systems’ data center infrastructure manufacturing business is seen as strategic, expected to grow Sanmina’s scale and increase revenue from cloud and AI segments.
- Communications end market is moving past an inventory correction, offering a temporary positive demand outlook.
- Bullish analysts are applying higher valuation multiples due to growing confidence in Sanmina’s improved revenue mix, specifically driven by higher-margin cloud and AI business.
- Macro environment remains weak and the company faces a challenging operating landscape, tempering overall enthusiasm.
- Successful ramp-up and scale realization of new programs in the second half of the year are necessary to fully achieve anticipated benefits from recent strategic moves.
What's in the News
- Sanmina issued earnings guidance for its fourth fiscal quarter, expecting revenue between $2.0 billion and $2.1 billion and GAAP diluted EPS between $1.21 and $1.31.
- The company repurchased 197,018 shares for $13.38 million in the latest tranche, completing 801,093 shares for $60.8 million under the buyback announced earlier in the year.
- Sanmina was added to multiple Russell growth indices, including the Russell 2000 Growth, 2500 Growth, 3000 Growth, and related benchmarks.
- The company amended its bylaws to lower the ownership threshold to call a special shareholders meeting from 50% to 25% and introduced a one-year continuous holding period requirement.
Valuation Changes
Summary of Valuation Changes for Sanmina
- The Consensus Analyst Price Target remained effectively unchanged, at $119.50.
- The Discount Rate for Sanmina remained effectively unchanged, at 8.22%.
- The Future P/E for Sanmina remained effectively unchanged, moving only marginally from 20.56x to 20.57x.
Disclaimer
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