Patroller and all,
Keith Dunne thinks all is well too:
BancBoston Robertson Stephens Upgrades JBL to a Buy Rating
SAN FRANCISCO, July 29 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a
member of the National Association of Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens managing director and senior electronic manufacturing products/services analyst J.
Keith Dunne upgraded Jabil Circuit, Inc. (NYSE: JBL - news), to a Buy rating from a Long-Term Attractive. The
company has grown to be one of the largest electronic manufacturing services (EMS) providers in the world, offering a
full range of design, component procurement, assembly, test and logistics services to OEMs.
''We are upgrading Jabil to a Buy rating from a Long-Term Attractive, due to a 30 percent pullback in the stock over the
past-two months, despite a more than 10 percent increase for the overall EMS industry. We believe fundamentals are
largely intact, although production appears to be slightly behind schedule for one PC program,'' said Dunne.
''We continue to expect fourth-quarter 1999 earnings-per-share of $0.30, although sales are likely to be at the lower end
of our $445 to $450 million estimates, with the offset coming from higher-interest income and a lower-tax-rate,'' said
Dunne. ''We are maintaining our earnings-per-share estimates and continue to believe the significant outsourcing trend
could offer additional upside opportunities by the middle of next year.
''Jabil is trading at 23 times our fiscal 2000 earnings-per-share, which we believe is an attractive entry point given that
our second-half 2000 estimates could be conservative depending on new customer developments,'' said Dunne. ''We
believe Jabil remains a 'Best of Breed' EMS company.
''In addition, we believe the outsourcing trend is very much alive, as confirmed by more than a dozen EMS companies
presenting at our EMPS conference earlier this week,'' said Dunne. ''We would not be surprised if near $5 billion in
potential new business for the EMS industry is currently being negotiated. As an example, Jabil announced Fore
Systems as a new customer at the conference.''
Clients interested in receiving more information should contact their salesperson at 415-781-9700.
BancBoston Robertson Stephens, the section 20 subsidiary of BankBoston (NYSE: BKB - news), is a leading
international investment bank focused on growth companies in the technology, life sciences and healthcare, information
and business services, retail and consumer products, real estate, media, telecommunications, broadcasting, and gaming
and lodging sectors. The firm's 45 equity research analysts cover nearly 700 companies. Since its founding in 1978,
BancBoston Robertson Stephens has raised over $52 billion in initial public offerings, follow-ons and convertible
offerings. The firm has also assisted in over 400 mergers and acquisitions transactions valued at more than $77 billion.
BancBoston Robertson Stephens began its high yield securities business in February 1997 and since that time has
completed 69 transactions, including 15 lead transactions, raising more than $12.6 billion. BancBoston Robertson
Stephens has offices in San Francisco, New York, Menlo Park, Boston, Chicago, London and Tel Aviv.
The following synopsis is qualified in its entirety by the more detailed information contained in the full research report,
including the discussion of certain risks associated with an investment in this security contained in ''Investment Risks.''
The information contained herein is not a complete analysis of every material fact respecting any company, industry or
security. Although opinions and estimates expressed herein reflect the current judgment of BancBoston Robertson
Stephens, the information upon which such opinions and estimates are based is not necessarily updated on a regular
basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to
change without notice. This Report contains forward-looking statements, which involve risks and uncertainties. Actual
results may differ significantly from the results described in the forward-looking statements. Factors that might cause
such a difference include, but are not limited to, those discussed in ''Investment Risks.'' BancBoston Robertson Stephens
from time to time performs corporate finance or other services for some companies described herein and may
occasionally possess material, nonpublic information regarding such companies. This information is not used in the
preparation of the opinions and estimates herein. While the information contained in this Report and the opinions
contained herein are based on sources believed to be reliable, BancBoston Robertson Stephens has not independently
verified the facts, assumptions and estimates contained in this Report. Accordingly, no representation or warranty,
expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or
correctness of the information and opinions contained in this Report. BancBoston Robertson Stephens, its managing
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SOURCE: BancBoston Robertson Stephens |
