03:40 PM EDT, 06/20/2024 (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 cut our 12-month target to $134 from $151, on a P/E of 13x our FY 25 EPS view, below peers. We up our FY 24 (Aug.) EPS to $8.37 from $8.34 and FY 25's to $10.33 from $10.27. JBL posted Q3 EPS of $1.89 vs. $1.99, beating consensus by $0.04. Sales declined 20%, driven by an 18% decrease in EMS and a 23% drop in DMS. This downturn was more severe than anticipated, affecting nearly all key end markets, with Auto being the sole exception (+5%). We expect that a meaningful recovery is unlikely to materialize until FY 25, with FY 24 serving as a transitional period. JBL has completed the divestiture of its low-margin business, a strategic move expected to enhance profitability. The company has also undergone a leadership change, with new CEO Mike Dastoor at the helm, bringing focus on margins and cash flow. While JBL's limited visibility into FY 25 is understandable given the weak macro environment, we remain optimistic on JBL's scale and long-term secular tailwinds, particularly as cyclical end markets recover.