CSFB upgraded Sanmina-SCI (SANM) to outperform from neutral.
Analyst Michael Walker says Sanmina's fourth-quarter and guidance were mixed. He also notes that $3.3 billion third-quarter revenues were at the high end of the forecast range and earnings per share of 8 cents was at the low end. Meanwhile, fourth-quarter guidance was similarly mixed.
However, Walker says Sanmina is driving value out of its restructuring effort in its core electronics manufacturing services business, which he believes will result in earnings growth well ahead of expectations implied by the stock's sector-low valuation.
He raised his 45 cents fiscal 2005 (Sept.) earnings-per-share estimate to 48 cents on a higher margin assumption. He boosted the $8 price target on the stock to $10.