Argus Boosts Sanmina Price Target to $200, Citing Strong Earnings and Resilient Operations
In a bullish move for the electronics manufacturing sector, investment research firm Argus has significantly increased its price target for Sanmina Corporation (NASDAQ:SANM) from $170 to $200, reaffirming its Buy rating on the stock. The adjustment, reported by The Fly on January 27, comes hot on the heels of Sanmina's strong first-quarter earnings for fiscal 2026.
Argus analysts highlighted Sanmina's earnings beat as a primary catalyst, alongside the company's substantial and agile manufacturing footprint across the Americas. Notably, the firm pointed out that Sanmina has navigated global tariff pressures with minimal disruption, a testament to its diversified operational base. "Sanmina's infrastructure and global scale position it favorably in the current environment," the analyst note suggested, underscoring resilience as a key investment thesis.
Sanmina's official results, released on January 26, provided the foundation for this optimism. The company posted Q1 2026 revenues of $3.19 billion, with GAAP diluted earnings per share of $0.89. Management credited strength in Communications Networks and, crucially, in the booming Cloud & AI Infrastructure end-markets, where demand for AI-related hardware is surging. Looking ahead, Sanmina provided guidance for Q2 2026, forecasting revenue between $3.1 billion and $3.4 billion and non-GAAP diluted EPS in the range of $2.25 to $2.55.
As a leading provider of integrated manufacturing solutions, Sanmina is a core player in the global Electronics Manufacturing Services (EMS) market, which is experiencing sustained growth driven by digital transformation and supply chain reconfiguration.
Market Voices: A Mix of Confidence and Skepticism
Michael R., Portfolio Manager: "This target revision is a logical response to solid fundamentals. Sanmina isn't just riding an AI wave; it's demonstrating operational excellence and geographic flexibility that investors value in today's climate."
David Chen, Tech Industry Analyst: "While the numbers are good, the guidance is where the real story is. That EPS range for next quarter shows significant projected sequential growth. It signals management's confidence in sustained demand, particularly from data center and networking clients."
Sarah J., Independent Investor: "Let's not get carried away. A single price target hike doesn't make a trend. The entire EMS sector is volatile and faces margin compression. I'd want to see a couple more quarters of this 'beat and raise' pattern before calling it a high-flyer."
Lisa Moreno, Manufacturing Consultant (sharper tone): "This is classic short-term market noise. Everyone's slapping 'AI' on their reports and getting a boost. The real test for Sanmina is whether its 'agile infrastructure' can withstand a real economic downturn or a shift in trade policy. The tariff impact has been 'minimal' so far, but that's a precarious foundation for a $200 valuation."