02:00 PM EDT, 04/30/2024 (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 lift our 12-month target by $9 to $67 on a P/E of 10x our FY 25 EPS view, near EMS peers. We cut our FY 24 EPS estimate to $5.49 from $5.56 and FY 25's to $6.73 from $6.82. SANM posted Q2 EPS of $1.30 vs. $1.59, beating consensus by $0.05. Revenue fell 21% to $1.83B, driven by ongoing inventory digestion, with declines in both Communications/Cloud (-36%) and Industrial/Medical/Defense/Auto (-10%). While near-term headwinds persist, we see pockets of potential upside in Industrial benefiting from tailwinds in renewable energy, partially mitigating softness in Medical as demand normalizes post-backlog fulfillment. However, we think the cloud vertical warrants monitoring due to lingering inventory corrections and macroeconomic uncertainty. Pre-tax ROIC printed 22% with healthy leverage of 0.57x, while gross margin expanded 50 bps to 8.9% largely on favorable mix. Overall, inventory work-downs are weighing on top-line results across segments, but we are seeing early signs of stabilization in Industrial.