Flex Stock Gains as BofA Cites 'Overdone' Selloff Ahead of Earnings

Flex (FLEX) shares gained 2.7% in pre-open trading after analysts at BofA Securities reaffirmed a bullish outlook on the stock, citing an excessive recent selloff ahead of the company's upcoming earnings report.

BofA Sees Buying Opportunity

In a note to clients, BofA Securities reiterated its Buy rating on Flex shares, according to Investing.com. The bank lowered its price target to $150 from $180, attributing the change to valuation adjustments following a significant multi-week decline.

Analysts at the firm argued that the pullback, which left the stock approximately 54% below its 52-week high of $166.86, was "overdone." This assessment frames the current price as an attractive entry point for investors ahead of the company's financial disclosures.

Spotlight on Earnings

Investor focus is now on Flex's fiscal second-quarter 2027 results, scheduled for release before the market opens on Wednesday, October 28. The report is a pivotal event that will test the bullish thesis.

Wall Street consensus expectations for the quarter include:

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• Earnings per share (EPS): Approximately $1.05, representing a 32.9% year-over-year increase.
• Revenue: Around $8.18 billion.

Analysts have identified the company’s Cloud and Power Infrastructure segment as a key area to watch, with performance expected to be bolstered by strong demand linked to the artificial intelligence (AI) sector.

Investor Sentiment and Market Context

Underscoring confidence from institutional investors, a recent SEC filing revealed that Deltec Asset Management increased its position in Flex by over 40% during the third quarter. This accumulation occurred even as the stock pulled back from its highs.

The stock-specific optimism comes against a relatively stable backdrop in the broader market, with the S&P 500, Dow Jones Industrial Average, and Nasdaq all trading near the flat line in pre-market hours.