Sanmina (SANM) has entered oversold territory with an RSI of 29.3, indicating potential exhaustion of recent selling pressure. This could signal a buying opportunity as the stock may rebound from its current price of $76.32.

Fundamental Analysis:

Sanmina reported a 7% YoY revenue growth in Q1 2025, driven by strong performance in communications networks and cloud infrastructure. The company expects high single-digit revenue growth for FY2025 and is focusing on adding higher-margin customers to improve profitability.

Valuation Analysis:

Sanmina has a consensus 1-year median price target of $92, reflecting a 20% potential upside. The stock is considered a low-beta tech stock, offering stability in volatile markets.

Analyst Sentiment:

Sanmina ranks 7th among the best low-beta tech stocks, with a projected upside of 20%. Analysts view it as a stable investment with growth potential.

Conclusion:

Given the oversold condition and growth prospects, SANM presents a buying opportunity. However, consider the broader market conditions and company-specific risks before making a decision.

What is price prediction 2025 for SANM Stock?

The price prediction for SANM stock in 2025 is expected to reach $90-$92. This forecast is based on the stock entering oversold territory with an RSI of 29.3, indicating potential exhaustion of selling pressure. Additionally, SANM has been upgraded by analysts and offers a projected upside of 20%, supported by strong Q1 results and a median price target of $92.

What is surpport and resistant level for SANM Stock?

The S1 support level for SANM Stock is $73.57 ,The R1 resistant level for SANM Stock is $78.67.

What is the current price of SANM Stock?

As of the end of day on 2025-03-24, the price of SANM Stock was $80.88.

What is the target price of SANM Stock?

The target price for SANM Stock according to analyst rating is 91.00, with the highest price target at 92.00 and the lowest at 90.00. Analysts have a Hold rating on SANM Stock overall.

What is the market cap of Sanmina Corp?

The market cap of SANM is $4.3B.

Is Sanmina Corp (SANM) overvalued?

Analysis and Insights

Valuation Metrics:

Sanmina Corp (SANM) currently has a P/E ratio of 17.63 (Q4 2024) and 18.74 (Q1 2025), which is slightly above industry averages, suggesting moderate overvaluation. The EV/EBITDA ratio of 7.73 and 8.46 for the same periods indicates a fair valuation relative to earnings. The P/S ratio of 0.52 and 0.56 reflects undervaluation relative to revenue, while the P/B ratio of 1.69 and 1.83 suggests moderate overvaluation relative to book value.

Financial Performance:

Sanmina reported stable revenue of $2.017 billion (Q4 2024) and $2.006 billion (Q1 2025), with net income growth from $61.38 million to $65.03 million. Gross margin improved slightly to 10.55%, while ROE remained stable at 8.49% and 8.37%. The company maintains a healthy current ratio of 1.09 and 1.16, indicating strong liquidity.

Market Sentiment and Analyst Insights:

Recent news indicates that Sanmina's stock entered oversold territory with an RSI of 29.3, suggesting potential buying opportunities. Analysts have upgraded the stock to Hold with a price target of $92, reflecting an 11.07% upside. However, insider selling by a director may signal caution.

Conclusion:

While some valuation metrics suggest moderate overvaluation, the stock's low beta, stable financials, and analyst upgrades indicate it is not significantly overvalued. The potential upside and oversold condition make it a cautious buy.

What is Sanmina Corp (SANM)'s business?

Sanmina Corporation is a provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides these offerings primarily to original equipment manufacturers (OEMs), in industries, such as industrial, medical, defense and aerospace, automotive, communications networks and cloud infrastructure. The Company's operations are managed as two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS business consists of printed circuit board assembly and test, high-level assembly and test and direct-order-fulfillment. Its CPS components include printed circuit boards, backplanes and backplane assemblies, cable assemblies, fabricated metal parts, precision machined parts, and plastic-injected molded parts. Its products include memory solutions, high-performance storage platforms, optical, radio frequency (RF) and microelectronic (microE) design and manufacturing services and others.

What is price prediction 2030 for SANM Stock?

The price prediction for SANM stock by 2030 is approximately $92, driven by its position as a low-beta tech stock with a projected 20% upside and steady growth in the electronics manufacturing sector.