KeyBanc Raises FLEX Price Target, Keeps Overweight Rating

Flex Ltd. (NASDAQ:FLEX) is one of the 10 Best Tech Stocks Under $50 To Invest In. On July 2, KeyBanc increased its price target for Flex Ltd. (NASDAQ:FLEX) to $60 from $50 while keeping an “Overweight” rating.

The investment firm highlighted Flex Ltd.’s (NASDAQ:FLEX) differentiated strategy in the data center market. The company reaches more of the product-and-service total addressable market through its wide range of power products built on proprietary intellectual property.

KeyBanc analysts noted that when compared to its peers, Flex Ltd. (NASDAQ:FLEX) has achieved superior gross margin expansion. However, Flex Ltd. (NASDAQ:FLEX) still trades at a discount, trading at 16.5 times earnings compared to an average of 18.9 times for similar companies involved in data centers and AI.

Flex Ltd. (NASDAQ:FLEX) is a global manufacturing partner that helps companies design and build products. The company offers technology innovation, supply chain, and manufacturing solutions to a wide range of industries and end markets. Flex Ltd. (NASDAQ:FLEX) also designs and manufactures power and compute solutions for the data center market.

While we acknowledge the potential of FLEX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.