UPDATE: J.P. Morgan Raising Price Target On Jabil Circuit After Earnings

J.P. Morgan Chase & Co. is raising its price target on shares of Jabil Circuit JBL to $24 from $23.50, and it is reiterating its Overweight rating on shares following earnings. In a note to clients, J.P. Morgan writes, "Despite our concerns over recent weak performance by several large, high profile customers Jabil delivered solid FQ3 results and decent FQ4 guidance. The Diversified Manufacturing Services (36% of total revenue) is fulfilling its high growth, high margin promise and pockets of strength from storage and wireless infrastructure remain within the traditional Enterprise & Infrastructure (31% of total) business. We expect our new FQ4 and FY-12 forecasts to be adequately conservative, reflecting revenue growth slowing near the low end of Jabil's long-term 10-15% target range and believe any recovery by the high profile customers would represent incremental upside. With valuation near trough levels we believe the risk / reward remains compelling. We reiterate our Overweight rating." Shares of JBL are up 43 cents in pre-market trading to $19.28, a gain of 2.3%.