Flex (NASDAQ: FLEX) Stock Outlook: Raymond James Raises Price Target on Strong Q1 Earnings

• Raymond James has reiterated an "Outperform" rating for Flex, raising its price target to $170.00 from $150.00, reflecting confidence in the company's financial trajectory.
• Flex reported robust fiscal Q1 2027 results, with revenues of $7.93 billion and adjusted earnings of $1.00 per share, significantly beating consensus estimates.
• The company plans a strategic spin-off of its Cloud and Power Infrastructure business, "SpinCo," to capitalize on opportunities within the artificial intelligence (AI) market.

Analyst firm Raymond James maintains an "Outperform" rating for Flex (NASDAQ: FLEX), a global manufacturing and supply chain solutions provider. The firm's new price target for the stock is $170.00, an increase from its previous target of $150.00. This update comes as Flex stock trades at $103.02. The company offers design, engineering, and manufacturing services to various industries.

The positive rating reflects Flex's strong financial results. Flex reports fiscal first-quarter 2027 revenues of $7.93 billion, a 20.6% increase from the prior year. Adjusted earnings are $1.00 per share, marking a 38.9% year-over-year rise and beating consensus estimates by 7.5%, as highlighted by Zacks.

This performance is supported by broad-based growth, particularly a 35% revenue increase in its Cloud and Power Infrastructure segment. Following these robust results, Flex raises its own revenue and earnings guidance for fiscal 2027. This move signals the company's confidence in its continued financial strength.

A key part of Flex's strategy is the planned spin-off of its Cloud and Power Infrastructure business. As highlighted by PR Newswire, this new independent company, "SpinCo," will focus on opportunities in the artificial intelligence (AI) market. This strategic split aims to create two more focused and agile businesses.

Flex also reports a healthy adjusted operating margin of 6.7% for the quarter. This key metric shows how much profit the company makes from its core business operations. Over the past year, Flex stock has gained 121.8%, significantly outperforming its industry's average growth of 58.4%.