Craig-Hallum downgrades Flex to Hold, lowers price target to $27

As previously reported, Craig-Hallum analyst Christian Schwab downgraded Flex to Hold from Buy with a price target of $27, down from $28. The firm notes Flex reported solid Q4 FY24 results, but guided Q1 and FY25 below expectations as the company continues to face macro headwinds broadly across its business in the near term. Craig-Hallum is encouraged by the company’s execution to drive continued earnings growth, even through the currently challenging environment. However, with shares already trading at 9-times the company’s multi-year EPS target of $3.00, the firm believes Flex’s targeted execution is being largely priced in at current levels.