Can Jabil (JBL) Turn New Cooling Investments Into a Durable High-Value Manufacturing Edge?

• In recent days, analysts have reiterated positive views on Jabil, highlighting its planned North Carolina factory, liquid cooling retrofits, and the proposed Hanley Energy acquisition as key operational developments.
• These moves are being interpreted as reinforcing Jabil’s capacity to expand higher-value manufacturing and power-management solutions, even as short-term capacity constraints emerge.
• We’ll now explore how the planned North Carolina factory’s projected revenue contribution could influence Jabil’s existing investment narrative and assumptions.

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Jabil Investment Narrative Recap

To own Jabil, you need to believe it can convert its manufacturing scale and engineering depth into higher value, margin accretive work in areas like AI infrastructure and pharmaceuticals. The latest analyst updates around the North Carolina factory and liquid cooling retrofits do not materially change that big picture, but they do sharpen the near term focus on execution risks from temporary capacity limits and on whether AI related demand can offset ongoing weakness in EV and renewable energy exposure.

The planned North Carolina facility, with an estimated US$1 billion annual revenue contribution once ramped, sits at the center of this evolving story. It links directly to the key catalyst of Jabil winning a larger share of AI driven and power intensive hardware, while also testing the company’s ability to manage near term production headwinds from liquid cooling upgrades without letting inventory and cash flow pressures build.

Yet, against this growth push, investors should be aware that rising inventory days and capacity constraints could start to...

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

Jabil's narrative projects $34.3 billion revenue and $1.3 billion earnings by 2028.

Uncover how Jabil's forecasts yield a $245.62 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community cluster between US$245.63 and US$258.76, underscoring how tightly some private investors group their views. You will also see other community members weighing those valuations against Jabil’s push into higher value AI related manufacturing, which could have important implications for how its future performance is assessed.

Explore 2 other fair value estimates on Jabil - why the stock might be worth as much as 10% more than the current price!

Build Your Own Jabil 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 Jabil research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Jabil research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Jabil'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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