Jabil Seen Undervalued as AI Revenue and Margins Expand
The author rates Jabil a Strong Buy with a $446 target, implying about 49% upside from around $300. The thesis expects a shift toward higher-value engineering and manufacturing to lift operating margins, with 2028 core EPS projected at $21.22. AI-related revenue is forecast to reach $22.1B by 2027, supporting a 34% core EPS increase and 6.5% core operating margin by 2028, while the stock trades at a discount to peers.
The article, published Oct. 10, 2026, by The Curious Analyst, assigns Jabil Inc. (JBL) a Strong Buy rating and a $446 target. That target implies roughly 49% upside from a price near $300. The analyst expects Jabil’s shift toward more advanced engineering and production work to improve operating margins.
Forecasts cited include 2028 core EPS of $21.22 and AI-related revenue reaching $22.1 billion by 2027. Those figures underpin a projected 34% core EPS increase and a 6.5% core operating margin by 2028. Jabil’s forward non-GAAP PEG of 0.58x is described as a 54% discount to the sector median.
If Jabil’s AI-related revenue and margins expand as projected, investors may benefit from the analyst’s estimated upside, while employees, suppliers, and technology customers could see changing demand for advanced manufacturing capacity. Communities hosting Jabil facilities may experience indirect effects through hiring and investment. However, forecasts can prove inaccurate, and market reactions may affect retirement and savings accounts holding the stock.