Sanmina's analyst price target has been raised significantly from $158.50 to $190.00. This increase reflects renewed optimism from analysts who highlight strong sector recovery and new business opportunities, despite ongoing macroeconomic and integration challenges.

Analyst Commentary

Analysts continue to update their perspectives on Sanmina's prospects following recent financial results and new strategic partnerships. Their commentaries reflect both optimism about the company’s growth trajectory and caution regarding certain market and execution risks.

• Recent increases in price targets highlight renewed confidence in Sanmina’s valuation, with analysts responding positively to the company exceeding expectations in its latest fiscal report.
• Strong momentum in the communications end market, especially after the sector emerged from an inventory correction, has contributed to a more favorable growth outlook.
• The company is positioned to benefit from its expanded capabilities in full rack assembly and its partnership in supporting advanced AI datacenter projects. These developments could drive incremental business opportunities.
• Sanmina’s designation as a preferred NPI partner for leading semiconductor companies points to its solid execution capability and a likely expansion of its role in next-generation technology deployments.

• Uncertainty remains around the broader macroeconomic environment, which could impact demand visibility and overall revenue growth.
• The ongoing integration of the ZT business and the subsequent need to ramp operations with major industry players adds execution risk for the company in the near term.
• Analysts note difficulty in precisely forecasting the financial impact from new partnerships, as much depends on Sanmina’s share of new project awards and customer choices among competing solutions.
• Despite the raised targets, a neutral stance reflects recognition of both strong opportunities and significant challenges present in Sanmina’s current operating landscape.

What's in the News

• Sanmina Corporation has issued earnings guidance for the first quarter ending December 27, 2025, projecting revenue in the range of $2.9 billion to $3.2 billion (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has increased substantially from $158.50 to $190.00, reflecting a more optimistic valuation outlook.
• Discount Rate has decreased slightly, moving from 8.37% to 8.29%. This can indicate lower perceived risk in Sanmina's future cash flows.
• Revenue Growth assumptions have risen sharply, from 6.38% to 37.29%. This suggests significantly higher expectations for top-line expansion.
• Net Profit Margin projections have declined from 3.88% to 3.17%, which points to a more conservative assessment of earnings efficiency.
• Future P/E Ratio estimates have dropped from 27.39x to 18.81x. This implies that the stock is potentially seen as more attractively valued based on forward earnings.