A Look At Plexus (PLXS) Valuation After Recent Share Price Pullback And Analyst Target Reset

Plexus overview after recent trading move

Plexus (PLXS) has drawn fresh attention after a recent move in its share price, with the stock last closing at $197.55. That level reflects a 1 day return of about a 0.5% decline and a 7 day return of roughly a 1.9% decline.

See our latest analysis for Plexus.

While Plexus has seen a modest 1 day share price pullback and a softer 7 day share price return, the 30 day share price return of 13.52% and 90 day share price return of 38.52% sit alongside a 1 year total shareholder return of 44.99%. This suggests that momentum has been building over both shorter and longer horizons.

If today’s move has you thinking about where else growth stories might emerge, our screener of 34 AI infrastructure stocks is a useful way to find other tech focused opportunities beyond Plexus.

With Plexus trading near its recent high and only a small gap to the US$200.80 analyst price target, the key question is whether the current valuation still leaves upside or if markets are already pricing in future growth.

Most Popular Narrative: 1.6% Undervalued

With Plexus last closing at $197.55 against a narrative fair value of about $200.80, the current setup reflects only a small implied discount while still baking in meaningful growth and profitability assumptions.

The analyst price target for Plexus has shifted from US$159 to about US$201, as analysts factor in updated views on revenue growth, profit margins, and the P/E multiple they are comfortable assigning to the stock.

Across the recent research, the common thread is that analysts are reworking their models rather than making small cosmetic changes. For you as an investor, the key question is whether the new target range is supported by the company’s ability to execute on growth plans and sustain profitability that justifies the P/E multiples being used.

Read the complete narrative.

Curious what underpins that higher fair value band, and why the assumed earnings path and profit margins need a richer P/E multiple to stack up? The narrative leans on specific revenue growth expectations, a step up in margins and a future valuation multiple that sits above the wider sector. If you want to see exactly how those moving parts line up to reach roughly $200 per share, the full storyline and its numbers are worth a closer look.

Result: Fair Value of $200.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that storyline can quickly be challenged if tariff and protectionism uncertainties keep orders lumpy, or if large customers delay projects and squeeze margins.

Find out about the key risks to this Plexus narrative.

Another way to look at Plexus’ valuation

The earlier fair value work relied on analyst targets and earnings assumptions. Our SWS DCF model presents a very different perspective, with Plexus at $197.55 compared to an estimated future cash flow value of $31.59. On that framework, the shares screen as heavily overvalued. Which set of assumptions appears more realistic to you?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Plexus for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 56 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of strengths and concerns feels finely balanced, take a moment to look through the detail yourself and move quickly to firm up your own stance. You can start with 2 key rewards and 1 important warning sign.

Looking for more investment ideas?

If Plexus has sharpened your focus, do not stop here. Broaden your watchlist with fresh ideas that match your style before the next move passes you by.

• Target quality at a discount by checking out our 56 high quality undervalued stocks that combine stronger fundamentals with prices that may still be playing catch up.
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• Get ahead of the crowd by scanning our screener containing 23 high quality undiscovered gems that have solid underlying metrics but receive far less attention.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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