UBS Recommends Jabil: Osijek Plant Takes on a Key Role
A €36.5 million capital increase has raised Jabil Croatia's share capital to €97 million, and the Swiss bank now recommends buying shares of the American giant.
A €36.5 million capital increase has raised Jabil Croatia's share capital to €97 million, and the Swiss bank now recommends buying shares of the American giant.
Analysts at the investment division of Swiss banking group UBS have upgraded their recommendation for the stock of American company Jabil to 'Buy', as reported by Lider. The new rating comes at a time when Jabil's Osijek subsidiary is undergoing a significant portfolio transformation and a capital increase that confirms a new phase of growth.
UBS analysts explain that Jabil is undergoing a major portfolio transformation. The company is moving away from areas currently experiencing declines, such as the automotive sector and consumer products, and focusing on areas with the highest operating profit. At the same time, Jabil is investing in AI hardware assembly plants, with chips for Amazon and Meta to be installed in facilities in India and the US.
However, for the Croatian plant in Nemetin near Osijek, a different but equally important role is planned. The Osijek plant is expected to be a strong driver in the production of high-tech medical equipment and advanced industrial automation. This is precisely why the Osijek plant is stepping out of the shadow of the sluggish automotive industry and becoming part of the calculations on the New York Stock Exchange.
That all of this from Wall Street is not just theory is confirmed on the ground in Croatia. According to the court register, Jabil Croatia has increased its share capital, raising the capital of the Osijek subsidiary by 60 percent, from €60.5 million to €97 million. The additional €36.5 million invested in this greenfield project undeniably confirms that full capacity is being activated in Nemetin within the framework of a new, more profitable global strategy.
The market has welcomed the strategic shift with great optimism. JBL's stock on the New York Stock Exchange reached $366.16, a nine percent increase in just one month, outperforming the broader S&P 500 index. For the full year, revenue of approximately $35 billion is expected, with earnings per share growth of more than 30 percent.
The editor notes that a journalist's inquiry was sent to Jabil's management with specific questions about the purpose of the new €36.5 million from the capital increase, how much of the Osijek plant's focus is on medical equipment and automation versus AI infrastructure, and the phase of the announced hiring of up to 1,500 workers. Official responses had not arrived by the time of writing.
