Sanmina (SANM) is back in focus after Microbot Medical selected the company to manufacture its LIBERTY System, an FDA cleared, single use, remotely operated robotic platform for peripheral endovascular procedures.

Sanmina’s latest contract arrives after a strong run, with the share price up 41.3% over 90 days and the 1 year total shareholder return at 100.43%, even though the 30 day share price return is down 9.74%. Overall, momentum still leans positive over the longer term.

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After a 41.3% move over 90 days and the stock now sitting only modestly below analyst targets, the real puzzle for Sanmina is whether this Microbot Medical win adds meaningful upside or whether most of the easy gains are already behind it.

Most Popular Narrative: 6.7% Undervalued

Based on the most followed narrative, Sanmina's fair value of $223.75 sits modestly above the last close at $208.79, which keeps attention on how the growth story is being priced.

The imminent acquisition of ZT Systems is expected to add $5 to $6 billion of annual run-rate revenue, positioning Sanmina to double its net revenue within three years and capitalize on explosive growth in data center and AI infrastructure investment. This should provide a multi-year boost to overall revenue and EPS accretion from synergies and integration.

Read the complete narrative. Read the complete narrative.

Want to see what sits behind that acquisition math. Revenue curves, margin assumptions, and a future earnings multiple all work together to support that fair value.

Result: Fair Value of $223.75 (UNDERVALUED)

However, Sanmina’s story still carries key pressure points, including high reliance on a small group of customers and execution risk tied to the large ZT Systems acquisition.

Next Steps

With Sanmina’s mix of optimism around growth and concerns about execution and customer concentration, it makes sense to check the evidence yourself and act while the story is fresh. You can start with the 2 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.