Flex: A Strong Buy Before The AI Data Center Infrastructure Spin-Off

I rate Flex Ltd. a Strong Buy with a $184 price target, implying 55% upside potential.

The main growth drivers are Cloud and Cooling and the Power platform.

Based on my assumptions, Cloud and Cooling contributes about $2.45 of incremental EPS by 2028, while Power adds another $0.95 as data center capacity expands and operating margins improve.

I arrive at my Price target by applying a 26x FWD non-GAAP P/E multiple to my 2028 estimated EPS of $7.06.

The largest risks are delays in hyperscaler projects, weaker CPI operating leverage, and higher-than-expected separation costs.

I am rating Flex Ltd. (FLEX) a Strong Buy with a price target of $184. This target represents an upside potential of 55% from the current level of $119