Jul. 30 at 5:27 PM
$SANM
July 28, 2026
04:52 PM ET... CFRA Upgrades Sanmina Corporation to Buy from Hold (SANM 171.95****):
We maintain our
$250 target price, applying a multiple of 19x our FY 27 (Sep.) EPSestimate, reflecting SANM’s shift toward scaled AI infrastructure manufacturer. We raise our FY 26 EPS to
$12.11 from
$11.23 and our FY 27 EPS
$13.18 from
$12.95, driven by Q3 outperformance and stronger FY 27 revenues expectations. SANM
delivered revenue of
$3.5B (+70% Y/Y), above consensus of
$3.4B. The more impressive result was non-GAAP operating margin of 8% (up ~230 bps Y/Y) driving EPS of
$3.31 versus consensus of
$2.79. AI infrastructure demand is broadening beyond ZT Systems into core Sanmina, where organic Cloud and AI growth accelerated to 33% Y/Y and a new Cerebras win points to a multi-platform business model rather than single-customer dependency. The balance sheet remains healthy, with
$1.8B in cash against
$2.2B in debt, supporting the ongoing capex cycle. With
raised FY 26 guidance and
