Collins Stewart Reiterates Buy, $9 Target on Flextronics

Collins Stewart maintains its Buy rating and $9 target price on Flextronics FLEX as the company shifts away from some High Velocity works. Collins Stewart says, "Flextronics reported Dec qtr revenue of $7.5B which was at the high end of prior lowered guidance. EPS of $0.18 was at the low end of the $0.18-$0.22 range as expenses related to finally closing out the PC ODM business were $20M higher than the expected $50M. For the March quarter, revenue is expected to be $6.3B-$6.6B vs. our $6.7B est as the company works down some High Velocity business. Overall FLEX characterized business as having stabilized, especially in the month of December and that March is the first quarter in which customers had not reduced forecasts. EPS is expected to be between $0.22-$0.24 vs. our prior $0.22." FLEX closed at $6.72 per share on Thursday.