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Research Alert: CFRA Maintains Buy Opinion On Shares Of Flex Ltd.
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Research Alert: CFRA Maintains Buy Opinion On Shares Of Flex Ltd.
Jul 10, 2025 8:44 AM

11:25 AM EDT, 07/10/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price to $60 from $46 on 17.3x our CY 26 EPS view of $3.45, above its three-year historical average, reflecting a long-term favorable mix shift toward higher-margin data center solutions. We lift our FY 26 EPS view to $2.92 from $2.84 and FY 27's to $3.49 from $3.46. FLEX is transitioning to high-value AI data centers, fueled by acquisitions (JetCool, Crown) leading 45% YoY revenue growth. We think FLEX's strategic transformation from low-margin manufacturing to AI infrastructure positions it well for sustained growth. We expect the data center segment to accelerate with management guiding 30% revenue growth in FY 26, capitalizing on robust cloud and AI demand. While industrial markets remain soft and automotive weakness pressures the Reliability segment, we believe recovery will materialize in FY 26 as end markets stabilize. We view FLEX's record adjusted operating margins and consistent free cash flow generation as evidence of operational discipline.

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