Our 12-month target of $66, lower by $18, is on 16.8x our FY 21 (Sep.) EPS estimate, and a premium to Electronic Manufacturing Services (EMS) peers at 11.5x, but roughly aligned with PLXS's three-year historical average of 16.5x. We trim our FY 20 EPS estimate to $3.12 from $4.20 and FY 21's to $3.94 from $4.63. PLXS posts Mar-Q diluted EPS of $0.61 vs. $0.79, topping consensus by $0.05, and including $0.14 of costs directly associated to Covid-19. Revenues contracted 2.7% to $767M, but was better than their previously revised consensus by $26M. Health Care and Life Sciences remain a bright spot and should see a sequential uptick of 20%+ into Jun-Q, as demand for products used in testing and treating Covid-19 remains high. That said, PLXS's large exposure to new builds in commercial aerospace could largely overshadow pockets of strength, in our view, with future order cuts remaining highly likely. We will be keeping an eye on cash cycle days, which were elevated and up 16 days sequentially in Mar-Q.
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