Sanmina-SCI Dwindling Away - Analyst Blog
Sanmina-SCI Corporation (
SANM) is currently struggling with an industry-wide weakness and challenging end-market demand. After exiting its PC business, Sanmina has focused on its core business and margin improvement.
Although, Sanmina has reduced its cost structure, topline growth is sluggish and we believe the company will struggle to grow again in 2009 as well. However, we would like to see sustained growth before becoming more positive on the stock.
Given a weak and uncertain economic environment, we maintain a Sell recommendation on SANM shares. We lowered our six month price target to $0.50, given the company's gloomy outlook.
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