Key Highlights UBS initiated a Buy rating on Jabil, maintaining a $430 price target that suggests approximately 28% potential upside Shares of JBL advanced 3.4% to $348.22 during Tuesday’s se
Shares of Jabil advanced 3.4% to close at $348.22 during Tuesday’s trading session following a rating upgrade from UBS analyst David Vogt, who elevated the stock from Neutral to Buy while maintaining his $430 price objective. This target represents approximately 28% potential appreciation from present levels.
The positive rating change halted a two-session decline for JBL shares and positioned the stock among the S&P 500’s strongest performers, even as the broader index declined 0.1% for the day.
According to Vogt, the upgrade stems from a “multi-year expansion trajectory powered by AI infrastructure spending from Amazon, Meta, and Google,” which forms the foundation of the bullish thesis.
UBS adjusted its fiscal 2027 earnings per share projection upward to $16.78 from $15.89, while boosting the fiscal 2028 forecast to $20.24 from $18.34. Revenue projections for both fiscal years received increases of approximately 6%.
The investment firm anticipates AI-linked revenue will reach $20.3 billion during fiscal 2027, representing a significant increase from the $13.5 billion expected in fiscal 2026. This translates to growth of at least 50%.
Both Amazon and Meta are projected to generate approximately $1 billion each in additional revenue. UBS anticipates Google will provide another growth catalyst as fiscal 2027 progresses.
Amazon receives the most prominent position in UBS’s investment rationale.
“Amazon, Jabil’s largest AI partner, plans to accelerate deployment of its Graviton CPUs and Trainium AI ASICs over the next several years,” Vogt stated.
Industry supply chain intelligence indicating more robust demand than previously anticipated served as a critical factor in the enhanced projections.
Manufacturing capacity increases at Jabil’s Memphis and North Carolina operations are anticipated to accommodate expanding hyperscaler requirements. The company’s recently finalized Hanley acquisition is also viewed as a contributor to incremental revenue generation.
UBS projects Jabil’s operating margin will expand to approximately 6% during fiscal 2027, compared to an estimated 5.8% in fiscal 2026.
The firm additionally identified healthcare as a complementary growth opportunity, with Jabil’s Croatia manufacturing facility becoming operational to address increasing market demand. Investments in automation and robotics technologies are anticipated to enhance both expansion prospects and profitability metrics over the coming periods.
UBS made a modest reduction to its valuation multiple, adjusting it to approximately 22 times from 25 times, reflecting elevated capital expenses and a wider revaluation trend across AI infrastructure investments. Despite this adjustment, the firm retained its $430 price objective.
Vogt contends the present valuation incorporates roughly 9.5% 10-year EPS growth expectations, which falls short of UBS’s internal projection of approximately 11%.
JBL shares have appreciated 54% during 2026 and have climbed 53% throughout the preceding 12-month period.
During June, Jabil elevated its annual profit outlook to $12.70 per share from $12.25, while increasing revenue guidance to roughly $35 billion from $34 billion.
Company leadership attributed the enhanced guidance to stronger-than-anticipated performance within its automotive division and connected living operations, combined with sustained momentum in AI infrastructure demand.
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