) to buy from neutral.
Analyst Joseph Wolf says he expects a solid February report on Mar. 17. He says his visit to Guadalajara, Mexico, combined with his more extensive research, has increased his confidence that Jabil has been awarded new business that will drive better than expected results, especially in the second half of the year.
One specific opportunity that Wolf says he sees as underappreciated by the stock market is with Nokia. He now thinks Jabil's business has extended into handsets, which could contribute up to $500 million to revenue annually by the end of 2005 -- making Nokia a close to 10% contributor to Jabil's annual revenues. He also thinks Jabil's operating model, margins, return on invested captial, and execution are best-in-class in in electronic manufacturing services. He raised the $28 price target to $33.