Jabil Circuit Inc. rose the most in eight months on the expectation that it will generate more business from Apple Inc.’s next iteration of the iPhone.
Shares of the St. Petersburg, Florida-based electronics supplier closed at $20.75 in New York, up 6.8 percent, for the highest closing price since October. Jabil, which makes components for Research in Motion Ltd (RIM) as well as Apple, initially fell more than 3 percent post-market yesterday after reporting earnings.
“Jabil’s relationship with Apple is growing stronger,” said Brian Alexander, an analyst with Raymond James & Associates Inc. in St. Petersburg. He expects Jabil to benefit as Apple transitions to the iPhone 5.
“The relative stability in the business heading into a seasonally stronger part of the year is giving investors confidence that the worst is behind us and that this is really good business trading at a really low price,” Alexander added.
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