Thomas Weisel keeps its strong buy rating on Jabil Circuit (JBL).
Analyst Jim Savage says results were in line with his high on the Street's guidance. Despite challenging end markets, he says he expects Jabil to continue modest organic sequential revenue growth due to market share gains at Cisco, Agilent, Hewlett-Packard Compaq and others. Savage cut the $0.47 fiscal 2002 (Aug.) earnings per share estimate to $0.45, and cut the $0.90 fiscal 2003 estimate to $0.83 to reflect acquisition timing, some likely program push-outs, and conservative end-market forecasts. Savage thinks Jabil is a prime example of a successful EMS business model. He says the $29 six-month target reflects a multiple of 30 times his calendar 2003 cash EPS.