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Jabil Inc.'s estimated fair value is $280 based on a 2-stage free cash flow to equity model. The current share price of $224 suggests the company is potentially trading close to its fair value. The $228 analyst price target for JBL is 19% less than the estimated fair value.

Title: Jabil Inc.: Estimated Fair Value and Analyst Price Targets

Jabil Inc. (JBL) has been making waves in the financial markets with its recent performance and analyst sentiment. As of July 2, 2025, the company's estimated fair value stands at $280, based on a 2-stage free cash flow to equity model [1]. This valuation suggests that the company is trading close to its fair value, with the current share price of $224. The $228 analyst price target for JBL is 19% less than the estimated fair value [2].

The latest earnings report for Jabil Inc. has been well-received by analysts, with Q2 earnings of $2.55 per share exceeding estimates and showing 15.7% year-over-year revenue growth [3]. This robust performance has driven a positive shift in analyst sentiment, with many upgrading their price targets and ratings.

Despite the positive sentiment, some concerns remain regarding Jabil's longer-term revenue growth and free cash flow generation. Analysts have noted that while the company's focus on value-driven manufacturing and higher-growth markets like AI infrastructure and photonics is promising, there are still questions about its ability to sustain this growth over the long term [2].

The Zacks Rank system, which incorporates changes in analyst estimates, currently rates Jabil as a "Buy" with a Zacks Rank of #2 [1]. This quantitative model has a remarkable track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Industry Rank for the Electronics - Manufacturing Services industry, which includes Jabil, is 11, placing it in the top 5% of all 250+ industries [1].

Investors should also consider the company's valuation metrics, including its Forward P/E ratio of 23.49, which is a premium compared to the average Forward P/E of 21.77 in its industry [1]. Additionally, Jabil's PEG ratio of 1.42 is comparable to the industry average of 1.45, suggesting that the company's projected earnings growth is in line with its peers [1].

In conclusion, while Jabil Inc. is trading close to its estimated fair value, investors should be aware of the longer-term risks associated with the company's revenue growth and free cash flow generation. Analyst sentiment is generally positive, but it is essential to consider the company's valuation metrics and the broader industry trends when making investment decisions.

References

[1] https://www.nasdaq.com/articles/jabil-jbl-outpaces-stock-market-gains-what-you-should-know
[2] https://simplywall.st/stocks/us/tech/nyse-jbl/jabil/news/should-strong-earnings-and-analyst-upgrades-require-action-f
[3] https://www.ainvest.com/news/jabil-rises-0-49-strong-earnings-buy-consensus-470th-volume-rank-2508/