Sanmina (SANM) Is Up 6.6% After Issuing Strong Guidance and Attracting Institutional Interest – What's Changed

• Sanmina Corporation recently reported its fourth quarter and full year 2025 financial results, posting increased annual sales to US$8.13 billion and issuing revenue guidance of US$2.9 billion to US$3.2 billion for the next quarter.
• Institutional sentiment has turned positive, with multiple sources highlighting robust signals and overweight bias, drawing renewed investor focus following strong shareholder and analyst interest.
• We'll now examine how Sanmina’s updated revenue outlook and institutional sentiment may impact the company's longer-term investment narrative.

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Sanmina Investment Narrative Recap

To be a shareholder in Sanmina today, you need to believe in its ability to scale through large acquisitions and long-term demand for electronics manufacturing across data center, communications, and industrial markets. The recent uptick in annual sales and strong Q1 guidance support the catalyst of robust end-market growth, but do not materially change the short-term risk tied to integrating ZT Systems and working capital exposure, especially if demand or product mixes shift unexpectedly.

Among recent announcements, the $800 million incremental term loan facility stands out, as it directly supports Sanmina’s acquisition plans and accelerates its move to double revenue with the ZT Systems deal. This financing strengthens the balance sheet for near-term growth, but also magnifies execution risk if acquisition synergies or underlying demand fall short.

In contrast, investors should also be aware of the heightened risk if major customer concentration exposes Sanmina to revenue declines in the event of...

Read the full narrative on Sanmina (it's free!)

Sanmina's narrative projects $9.7 billion revenue and $375.6 million earnings by 2028. This requires 6.4% yearly revenue growth and a $116.4 million earnings increase from $259.2 million.

Uncover how Sanmina's forecasts yield a $190.00 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have posted fair value estimates for Sanmina ranging from US$25.23 to US$223.74, with three distinct perspectives. With Sanmina’s growth forecasts dependent on successful integration of new acquisitions, these varying opinions invite you to explore how differing expectations shape views on the company’s future.

Explore 3 other fair value estimates on Sanmina - why the stock might be worth less than half the current price!

Build Your Own Sanmina Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Sanmina research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Sanmina research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sanmina's overall financial health at a glance.

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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.

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