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JBL: AI Cybersecurity Partnership Will Drive Strong Medium Term Upside

Analysts Lift Jabil Price Target as Buybacks and AI Initiatives Drive Up Valuation Expectations

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JBL
AnalystConsensusTarget
Not Invested
Published 29 Sep 2024

Update shared on 19 Dec 2025

Fair value Increased 5.55%
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Analysts have raised their price target on Jabil from 245.63 dollars to 259.25 dollars. This reflects slightly stronger expectations for revenue growth and profit margins, as well as a modestly lower discount rate, partially offset by a slightly lower future price to earnings multiple.

What's in the News

  • Issued earnings guidance for the second quarter of fiscal 2026, projecting net revenue between 7.5 billion dollars and 8.0 billion dollars and U.S. GAAP diluted EPS of 1.70 dollars to 2.19 dollars per share (Corporate Guidance)
  • Raised full fiscal year 2026 net revenue outlook to 32.4 billion dollars, signaling confidence in medium term demand trends (Corporate Guidance)
  • Expanded a strategic collaboration with Inno to co invest in a 15,000 square meter battery energy storage enclosure site in Rayong, Thailand. This initiative targets late 2026 prototyping and positions operations closer to key ports and end markets (Strategic Alliances)
  • Deepened partnership with Axiado to deliver AI driven cybersecurity and OCP modular server solutions, using Jabil MHS platforms to enable secure, scalable data center deployments (Strategic Alliances, Product Related)
  • Launched J 422G AI optimized servers based on sixth generation Intel Xeon in support of high intensity AI, ML, LLM, and HPC workloads. Broader OCP compliant server and networking platforms will be showcased at the 2025 OCP Global Summit (Product Related)

Valuation Changes

  • Fair Value: Raised slightly from 245.63 dollars to 259.25 dollars per share, reflecting a modestly higher intrinsic valuation.
  • Discount Rate: Decreased marginally from 8.84 percent to 8.78 percent, indicating a slightly lower perceived risk or cost of capital.
  • Revenue Growth: Increased slightly from 6.72 percent to 7.02 percent, pointing to a modestly stronger top line outlook.
  • Net Profit Margin: Risen slightly from 3.30 percent to 3.46 percent, suggesting a small improvement in expected profitability.
  • Future P/E: Reduced modestly from 26.51 times to 25.31 times, implying a slightly lower valuation multiple applied to future earnings.

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Disclaimer

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