Flex (FLEX) Stock Forecast & Price Target

Flex is viewed positively because the planned C27Q1 spin-off of its AI-focused CPI business should unlock a higher-growth, higher-margin asset that the market can value more separately from the mature EMS operations. The thesis is reinforced by strong expected revenue growth for CPI, guided at 65%+ in F27 and 80% more in F28, plus evidence of solid current profitability with 1QF27 CPI posting a 9.7% adjusted EBIT margin on $8.8B in annualized sales. The $4.4B EPC Power acquisition further strengthens the grid-to-chip portfolio and could add about $1.1B in C27 revenue at a 30% EBITDA margin, improving Flex’s positioning in AI infrastructure and supporting the bullish valuation case.

Flex is viewed negatively because a substantial portion of its current valuation appears tied to SpinCo, and any disappointment in its timing or prospects could quickly undermine the investment thesis. The company also faces a broad set of execution risks, including business and operational issues, geopolitical and trade exposure, cybersecurity threats, financial strain, and legal or regulatory challenges. On top of that, the stock has already fallen sharply and the price chart looks weak, with technical support around $100 potentially coming into play, reinforcing a cautious outlook.