Flextronics International Ltd. (FLEX)

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$FLEX Citigroup likes contract manufacturers because they should benefit as demand for sophisticated automotive content grows. It adds Flextronics (FLEX) to its buy list on "margin expansion potentials driven by favorable product mix and topline leverage." FLEX recently acquired Mirror Controls International, an automotive mirror company, in an effort to expand its car-related manufacturing. It has added companies in the solar and home automation sector as well. Citi expects these to add to margin growth and ups 2016 and 2017 EPS estimates by 3%. Citi also thinks the company's stock buyback strategy should benefit shares which are down nearly 3% YTD. FLEX is up 0.5% at $10.85. ([e-mail]; @patmsheridan)

(END) Dow Jones Newswires

December 11, 2015 11:53 ET