01:35 PM EDT, 03/21/2024 (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 keep our 12-month target at $151, shifting to a P/E of 14.7x our FY 25 EPS view, below peers on near-term end market weakness. We cut our FY 24 (Aug.) EPS to $8.34 from $9.14 and FY 25's to $10.27 from $10.60. JBL posted Q2 EPS of $1.68 vs. $1.88, in line with consensus. Sales declined 17%, driven by an 18% decrease in EMS and a 16% drop in DMS. Key end markets saw more-than-anticipated weakening with declines swept across the board except for Automotive (+9%) and Healthcare (+2%). We believe recovery will not take place until FY 25; FY 24 seems to be a transitional period as JBL completed its divestiture of its low-margin business to BYD Electronic, which we think will help profitability in the future. Inventory correction in renewable energy continues, but in the longer term we still like secular tailwinds around Healthcare, Auto, and AI. We note JBL's net debt of $1B and project FCF generation of $1.2B in FY 24, improving from $704M as supply constraints and working capital requirements ease.