Forecast: Analysts Think Sanmina Corporation's (NASDAQ:SANM) Business Prospects Have Improved Drastically

Sanmina Corporation (NASDAQ:SANM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. The market may be pricing in some blue sky too, with the share price gaining 29% to US$178 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

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Following the upgrade, the current consensus from Sanmina's two analysts is for revenues of US$14b in 2026 which - if met - would reflect a sizeable 74% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 49% to US$6.89. Before this latest update, the analysts had been forecasting revenues of US$8.7b and earnings per share (EPS) of US$5.82 in 2026. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Sanmina

It will come as no surprise to learn that the analysts have increased their price target for Sanmina 20% to US$190 on the back of these upgrades.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Sanmina's rate of growth is expected to accelerate meaningfully, with the forecast 74% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sanmina to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Sanmina could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Sanmina going out as far as 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.