Goldman Sachs Maintains Buy on Jabil Circuit

Goldman Sachs is out with its report today on Jabil Circuit JBL, maintaining Buy. In a note to clients, Goldman Sachs writes, "We remain Buy-rated on JBL, as we think the strong secular growth in its DMS business is not properly priced into the stock (8.5X GAAP P/E, or 35% discount to the market, and EV/EBITDA of only 3.9X). Our 6-month price target of $26 is based on a combination of P/E (10X) and EV/EBITDA (6X) multiples on our CY2011 estimates." At the time of posting, shares of JBL were trading pre-market at $18.10, down 1.04% from Friday's close.