J.P. Morgan Comments On Flextronics

J.P. Morgan has published a report on Flextronics FLEX after the electronics manufacturer talked of acquiring a manufacturing facility. In the report, J.P. Morgan writes, "After the close Cisco Systems (Neutral, covered by Rod Hall) announced an agreement to sell its manufacturing facility in Juarez, Mexico to Foxconn Technology Group which is part of the Hon Hai (Neutral, covered by Gokul Hariharan) family of companies. Terms were not disclosed. Cisco expects the transaction to close by Oct. 2011. 5,000 Cisco employees in Juarez will become employees of Foxconn and Cisco does not expect headcount reductions post sale. Cisco also announced details regarding its $1B annual expense reduction plan" J.P. Morgan rated Flextronics at Overweight. Flextronics closed Monday at $6.15.