Needham upgraded Sanmina-SCI (SANM) to buy from hold.
Analyst John McManus says demand for electronics manufacturing services -- across the board -- is increasing faster than he initially thought. He says Sanmina-SCI is perfectly positioned to leverage its vertical electronic manufacturing services business model in a prolonged economic recovery. Sanmina's components such as high-end printed circuit board, enclosures, backplanes, cabling, and memory modules can contribute more than 20% gross margin and 10% operating margin.
McManuse notes with accelerating order strength in October, the company sees 2004 revenue growth exceeding 15%. He sees 22 cents fiscal 2004 (Sept.) earnings per share, and raised the 39 cents fiscal 2005 earnings per share estimate to 44 cents. McManus has a $13 target.