Plexus initiated with a Sector Weight at KeyBanc

KeyBanc analyst Steve Barger initiated coverage of Plexus (PLXS) with a Sector Weight rating. While the analyst thinks Plexus’ longer lifecycle-focused end market differentiates it from larger peers and thinks its design and partnership-focused engineering and manufacturing enable the company to maintain its “partner of choice” status, the firm also acknowledges that shares trade at a valuation about 5 turns higher than the peer average despite in-line peer margins. The firm thinks high-single digit percentage revenue growth, modestly expanding margins, and its share buyback strategy should enable about a 12% EPS compound annual growth rate from FY25-27, the analyst tells investors.