Sanmina: Raymond James Downgrades After Weak Q2

Sanmina (SANM) shares, already under pressure from a disappointing earnings report and weak guidance, this morning was downgraded to Underperform from Market Perform by Raymond James analyst Brian Alexander.

Alexander notes that the stock had rallied 67% over the last three months, outperforming most other contract electronics manufacturers, and that the stock has been trading at a premium to its peers on an EV/EBITDA basis. “With margins taking a step function down, no new cost-cutting programs announced and therefore no new clear path toward profitability, we believe shares are vulnerable,” he writes.

SANM today is down 8 cents, or 14.5%, to 47 cents.