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Technology Stocks : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: patroller who wrote (4747)	12/13/1998 1:35:00 PM
From: Asymmetric	Read Replies (1) \| Respond to of 6317

Here's An Early Christmas Present. December 4, 1998 - 8:53am Credit Suisse First Boston Corporation Industry: Connectors, Other Components and Contract Manufacturing Jabil Circuit (JBL-NYSE) BUY Summary Jabil expecting all end markets to grow above targeted growth rate of 30%+ in FY99E. Integration of HP laser jet printer facilities has occurred better than expected; higher demand could offset lower margin peripheral business. Currently operating at 80% capacity utilization worldwide; expect to do greenfield operation or OEM asset acquisition in FY99E. Scotland facility has returned to profitability after 3COM shift in June. Will shortly announce production shift to Scotland for an existing datacom customer. End market strength and improved visibility could provide further multiple expansion. Price Target Mkt.Value 52-Week 12/03/981 (12 Mo.) Div. Yield (MM) Price Range 62.00 $53 None $2,393.2 $72-23 Annual Prev. Abs. Rel. EBITDA/ EPS EPS P/E P/E Share 8/99E $2.15 $2.05 28.8X 124% 8/98A 1.81 $1.79 34.3 141% 8/97A 1.37 NA 45.3 178% Nov Feb May Aug FY End 1999E $0.44 0.48 0.56 0.67 Aug.31 1998A 0.49 0.52 0.45 0.35 1997A 0.23 0.29 0.38 0.47 ROIC (12/97) Total Debt (FY98) $90.00 Book Value/Share (FY98) $6.38 WACC (12/97) Debt/Total Capital (FY98) 26.8% Common Shares 38.6 mil EP Trend Est. 5-Yr. EPS Growth 25.0% Est. 5-Yr. Div. Growth 1On 12/03/98 DJIA closed at 8879.68 and S&P 500 at 1150.14. Note: Calendar EPS estimates for 1997-99E: $1.63A; $1.76E; $2.45E. December 7, 1998 - 6:34pm Credit Suisse First Boston Corporation Industry: Connectors, Other Components and Contract Manufacturing Jabil Circuit (JBL-NYSE) BUY Summary We are raising the price target on Jabil to $81 from $53. Historically, during a period of sustained positive psychology, Jabil traded at a consistent 30% premium to the market (currently at 25x). If we award JBL a 30% premium to the market, that would imply fair value of a P/E multiple of 33x for the stock. Applying this 33x multiple to our C'99E EPS of $2.45 achieves an $81 price target, which implies 25% price appreciation from current levels. Recall that recently we raised the price target on our other high quality CMs as the sector has largely benefited from a stronger demand environment and improved visibility. As well, the upbeat tone from some of Jabil's major customers (i.e., Cisco and 3Com) at our Technology Conference indicated a healthy new product cycle has been driving demand. We maintain our Buy rating on the shares of Jabil. Price Target Mkt.Value 52-Week 12/07/981 (12 Mo.) Div. Yield (MM) Price Range 64.125 $81 None $2,475.2 $72-23 Annual Prev. Abs. Rel. EBITDA/ EPS EPS P/E P/E Share 8/99E $2.15 $2.05 29.8X 125% 8/98A 1.81 $1.79 35.4 141% 8/97A 1.37 NA 46.8 178% Nov Feb May Aug FY End 1999E $0.44 0.48 0.56 0.67 Aug.31 1998A 0.49 0.52 0.45 0.35 1997A 0.23 0.29 0.38 0.47 ROIC (12/97) Total Debt (FY98) $90.00 Book Value/Share (FY98) $6.38 WACC (12/97) Debt/Total Capital (FY98) 26.8% Common Shares 38.6 mil EP Trend Est. 5-Yr. EPS Growth 25.0% Est. 5-Yr. Div. Growth 1On 12/07/98 DJIA closed at 9070.47 and S&P 500 at 1187.74. Note: Calendar EPS estimates for 1997-99E: $1.63A; $1.76E; $2.45E. Closing prices as of December 7, 1998.