Deutsche Bank Maintains Buy on Molex

Deutsche Bank is out with its report today on Molex MOLX, maintaining Buy after meeting with Steve Martens, MOLX's head of IR. In a note to clients, Deutsche Bank writes, "MOLX remained positive on the structural changes it's made over the past few years. The business has been reorganized to better align with growing markets and employees are now better incentivized. In addition, pricing changes have driven improved results when negotiating with customers, with price erosion slowing last quarter to 2% Y/Y versus historical rates of down 3-5%. Positive improvements to the business and cost reductions have been somewhat offset by the higher cost of raw materials. Despite these headwinds, MOLX sees a path to 14% operating margins." Deutsche Bank maintains a $38 PT on MOLX. Shares of MOLX closed Friday at $27.14, up 0.89% from Thursday's close.