Analyst David Williams of Benchmark Co. reiterated a Buy rating on Plexus (PLXS – Research Report), with a price target of $160.00.
David Williams has given his Buy rating due to a combination of factors that highlight Plexus’s strong performance and future potential. The company reported impressive second-quarter results, with earnings exceeding expectations despite facing typical seasonal challenges. This success was attributed to operational efficiencies and effective working capital management. Furthermore, Plexus achieved record-setting program wins in Sustaining Services and Engineering Solutions, which are expected to drive continued revenue growth in the latter half of the fiscal year.
Additionally, Plexus’s robust cash flow generation and commitment to shareholder returns, evidenced by their share repurchase activities, underscore management’s confidence in the company’s valuation. The firm has also strategically positioned itself to mitigate potential impacts from tariffs through its localized manufacturing approach. With significant new program wins and a strong market presence, particularly in the semi-cap equipment sector, Plexus is well-positioned for sustained growth. These factors collectively support the Buy rating, even as the price target was adjusted to reflect broader industry uncertainties.
In another report released today, Needham also maintained a Buy rating on the stock with a $162.00 price target.
Based on the recent corporate insider activity of 90 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PLXS in relation to earlier this year.