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Analysts bullish on Jabil Circuit

Times Staff Writer
Published June 21, 2004

After a rough tumble last week, Jabil Circuit's stock may be in line for a rebound.

Shares in the St. Petersburg electronics manufacturer dropped almost 13 percent Thursday after it lowered its 2004 earnings forecast. It closed Friday up just 9 cents, at $24.58 a share.

Shawn Severson, a longtime Jabil watcher at Raymond James, said the market over-reacted. Friday, he raised Jabil from "outperform" to "strong buy" and set a 12-month price target of $31 a share.

Another analyst, Andrew Huang of American Technology Research, maintained his buy rating.

There may be "a slight hiccup" with Jabil, Huang said, but investors should stay the course. "We think investors should aggressively buy the stock in the low $20s," he wrote in a report setting his 2005 target at $40 a share.

He deemed Jabil's problems temporary and customer-specific, not a sign of deeper problems in the industry.

Backing up that analysis was the quarterly report of Jabil competitor Solectron Corp. After posting better-than-expected earnings, the California company's stock shot up 13 percent Friday.

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