TD Cowen Optimistic on Flex Q4 Results and Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy FLEX?
TD Cowen notes Flex (FLEX), contract manufacturer of hardware firewalls for Fortinet (FTNT), Palo Alto Networks (PANW), and Check Point (CHKP) partner, reported robust Q4 results and strong guidance fueled by AI-driven data center build outs. The firm believes the market-related commentary is highly indicative of a positive current business momentum in network security and expects beat-and-raise results from Fortinet and Palo Alto Networks as TD Cowen considers Check Point's revenue miss an isolated event. Overall, the firm considers Flex's robust Q4 financials and strong forward guidance indicative of continued strong momentum in network security and expect beat-and-raise results from Buy-rated Fortinet and Buy-rated Palo Alto.
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Analyst Views on FLEX
Wall Street analysts forecast FLEX stock price to fall
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 133.010
Low
74.00
Averages
76.71
High
85.00
Current: 133.010
Low
74.00
Averages
76.71
High
85.00
About FLEX
Flex Ltd. is end-to-end manufacturing partner that helps brands design, build, deliver and manage products. Its capabilities include design and engineering, supply chain, manufacturing, post-production and post-sale services, and proprietary products. Its segments include Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). The FAS segment consists of various end markets, such as Communications, Enterprise and Cloud, including data infrastructure, edge infrastructure and communications infrastructure; Lifestyle, including appliances, floorcare, smart living and power tools, and Consumer Devices, including mobile and high velocity consumer devices. The FRS segment consists of end markets, such as Automotive, including compute platforms, power electronics, motion, and interface; Health Solutions, including medical devices, medical equipment and drug delivery, and Industrial, including capital equipment, industrial devices, renewables, embedded and critical power.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Target Price: The new target price is set at $174, up from the previous $72.
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Flex (FLEX) Q4 2026 Earnings Call Transcript
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FLEX LTD: BARCLAYS INCREASES TARGET PRICE FROM $72 TO $174
- Company Overview: FLEX LTD has raised its target price significantly.
- New Target Price: The new target price is set at $174, up from the previous $72.
See More
US Stocks Surge as Tech Stocks Lead Gains
- Tech Stocks Rally: The Nasdaq 100 surged 2.08% to reach an all-time high on Wednesday, driven by stellar earnings from chipmakers and AI infrastructure firms, particularly Advanced Micro Devices, which rose over 17% as it raised its full-year sales forecast, reflecting strong investor optimism about ongoing AI investments.
- Crude Oil Plunge: WTI crude oil prices fell more than 7% to a two-week low as market expectations for a US-Iran peace agreement increased, easing inflation fears and contributing to stock market gains, with the 10-year Treasury yield dropping to a one-week low of 4.33%.
- Employment Data Impact: The April ADP employment report indicated that US companies added 109,000 jobs, below the expected 120,000, yet the market remains optimistic about the Fed's monetary policy, believing it will help maintain a low interest rate environment.
- International Market Surge: Overseas stock markets closed sharply higher, with the Euro Stoxx 50 rising 2.68% and China's Shanghai Composite gaining 1.17%, indicating a positive global market response to the US economic recovery, further boosting investor confidence.
See More
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- Arm Holdings Surge: Ahead of its earnings report, Arm Holdings saw a nearly 13% jump on Nasdaq, with UBS analyst raising its 12-month price target from $175 to $245, indicating strong market optimism for its growth potential.
- Healthpeak Properties Strong Performance: The healthcare REIT soared 18% after first-quarter funds from operations and revenue exceeded Wall Street expectations, raising its second-quarter FFO guidance to $1.71 to $1.75, reflecting robust business momentum.
- CDW Stock Decline: CDW shares dropped 19% after reporting disappointing operating income in Q1, with adjusted EPS of $2.28 matching consensus, yet the company reaffirmed its 2026 outlook, raising concerns about future performance.
- Aurora Innovation Partnership: Aurora Innovation's stock rose 9% following a deal to provide driverless technology to Berkshire Hathaway's McLane, which is expected to enhance its competitive edge in the long-haul trucking market.
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- Acquisition Strengthens Portfolio: The recent acquisition of Electrical Power Products (EP2) enhances Flex's power portfolio by providing utility-grade solutions for grid modernization, which is anticipated to further improve its competitive position in the market.
- Strong Financial Performance: Fourth-quarter revenue reached $7.5 billion with an adjusted gross margin hitting a record 9.9%, and adjusted earnings per share at $0.93, indicating significant improvements in profitability and boosting investor confidence.
- Positive Growth Outlook: Management projects revenue for fiscal year 2027 to be between $32.3 billion and $33.8 billion, with adjusted operating margins between 7% and 7.1%, while planning capital expenditures of $1.4 billion to $1.6 billion, reflecting strong confidence in future growth prospects.
See More
US Stocks Surge to New Highs Led by Tech Earnings
- Tech Stock Rally: The Nasdaq 100 index surged over 1.44% to reach an all-time high, driven by strong earnings from chipmakers and AI infrastructure stocks, reflecting market optimism about sustained investment growth in artificial intelligence.
- Crude Oil Plunge: WTI crude oil prices fell more than 6% to a two-week low as the US nears a peace agreement with Iran, which is expected to lift restrictions on the Strait of Hormuz, thereby reducing energy costs and enhancing profitability prospects for airlines and cruise lines.
- Employment Data Impact: The April ADP employment change report indicated that US companies added 109,000 jobs, below the expected 120,000, yet the market remains optimistic about the Fed's monetary policy, suggesting a lower likelihood of interest rate hikes.
- Earnings Optimism: So far, 84% of the 375 S&P 500 companies that reported earnings have exceeded expectations, with Q1 earnings projected to rise 12% year-over-year, indicating strong corporate profitability that further supports the stock market's upward trend.
See More
Flex (FLEX) Q4 2026 Earnings Call Transcript
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