CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target of $72, 10.3x our FY 24 EPS view, in line with electronic manufacturing services peers. We keep our FY 23 EPS estimate at $6.00 and lower FY 24 EPS to $7.00 from $7.51. SANM prints Dec-Q adj-EPS of $1.64 vs. $1.08, beating the $1.38 consensus. SANM realized 34% revenue growth Y/Y in Dec-Q to $2.36B, driven by a 36% increase in Integrated Manufacturing Solutions ($1.94B) with 6.9% gross margin, followed by 26% rise in Components, Products, and Services ($464M) with a 13.3% gross margin. We are encouraged by SAMN's healthy balance sheet transformation, with cash conversion cycles ticking down seven days Y/Y to 50 days and return on invested capital (ROIC) increasing 910 bps to 35.5% in Dec-Q. Communications networks and cloud infrastructure revenue rose 45% Y/Y to $1B, while industrial/medical/defense/automotive sales grew ~27% to $1.3B. We expect Cloud Infrastructure and automotive to remain strong in 2023 and positively view the lack of consumer-oriented revenue relative to peers.