SAN FRANCISCO, Nov. 10 -- The Wall Street outlook for Sanmina-SCI is improving but the EMS firm has a long way to go before convincing analysts that it has turned the corner. 

In a research report released today, Deutsche Bank said, "We have become more optimistic about Sanmina`s longer-term strategy, but believe the company must clear several near- and long-term hurdles before it warrants a premium valuation to its peers. Most importantly, we believe Sanmina`s short-term margin targets will prove aggressive."

Sanmina-SCI has set a goal of 10% revenue growth for fiscal 2005, a target DB calls "achievable." The investment bank "continues to question" Sanmina-SCI's margin forecasts, however, saying "management`s forecasts for its components business are particularly aggressive."

Sanmina-SCI cut its revenue estimates from original design manufacturing (ODM) services to $150 million to $200 million next year. Last year, the company forecast ODM sales would be $500 million by 2005.

• Prev
• Next