Zacks Investment Research downgraded shares of Plexus Corp. (PLXS) from OUTPERFORM to NEUTRAL on January 02, 2014, with a target price of $45.00.
Plexus reported an in-line fourth quarter of fiscal 2013. The company provided optimistic first-quarter guidance based on new business opportunities, particularly in the industrial/commercial and healthcare/life sciences sectors. We believe that global expansion as well as consolidation of facilities will drive profitability over the long term. Moreover, the disengagement from Juniper is expected to improve the product mix, going forward. However, we believe that a sluggish demand environment will continue to hurt Plexus in the near term. Additionally, the Juniper disengagement is expected to hurt top-line growth in fiscal 2014. Moreover, a matured electronic manufacturing services market and intense competition remain other long-term headwinds for Plexus. Thus, we downgrade our recommendation from Outperform to Neutral and set a price target of $45.00.
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