Jabil: The Market Is Still Underestimating Its AI Earnings Potential

The Curious Analyst 5.44K Followers Follow Summary I'm rating Jabil (JBL) a Strong Buy with a $446 price target, implying 49% upside potential. JBL's transformation toward higher-value engineering and manufacturing is fueling operating margin growth, with 2028 core EPS projected at $21.22. AI-related revenue is expected to reach $22.1B by 2027, supporting a 34% core EPS increase and a core operating margin of 6.5% by 2028. JBL trades at a FWD non-GAAP PEG of 0.58x, a 54% discount to sector median, suggesting undervaluation relative to its growth prospects. JHVEPhoto/iStock Editorial via Getty Images Investment Thesis I am assigning Jabil ( JBL ) a Strong Buy rating with a price target of $446. This represents about 49% upside from it6s current of $300. My thesis rests on 3 factors that I believe the market This article was written by The Curious Analyst 5.44K Followers Follow My background is in Financial Engineering and I have long since been interested in analyzing strong solid companies with a rare financial Profile. My primary area of specialization is in quantamental analysis, where I use a combination of data driven models and fundamental research. My approach is centered on a structured process that combines top-down screening with bottom-up company specific analysis .I write on to share ideas with a wider audience and also learn more about companies and other analysts. My goal is to make unique ideas & research accessible to retail and professional investors alike, while maintaining analytical depth and a clear investment thesis.Associated with another author Kennedy Njagi Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in JBL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.