Manufacturing solutions provider Jabil (NYSE:JBL) has agreed to divest its mobility unit to BYD Electronic in a $2.2 billion transaction.
The mobility unit produces consumer electronic components and has the majority of its operations in China’s Chengdu and Wuxi. With this transaction, Jabil can undertake moves such as stock repurchases to boost shareholder value as well as invest in key areas, including EVs, renewable energy, healthcare, and AI data centers.
The deal is expected to close in the first half of Jabil’s Fiscal year 2024. Further, Jabil is slated to announce fourth-quarter numbers tomorrow. Analysts expect the company to post an EPS of $2.32 on revenue of $8.54 billion for the quarter.
In the comparable year-ago period, Jabil had delivered an EPS of $2.34, comfortably outpacing estimates by $0.19.
Is JBL Stock a Buy?
Overall, the Street has a consensus price target of $122.20 on JBL, alongside a Strong Buy consensus rating. This implies a 16.4% potential upside in the stock, on top of an 87% price surge over the past year.
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