Jabil Circuit shares up on broker upgrade

BANGALORE, Sept 23 (Reuters) - Jabil Circuit Inc (JBL.N) shares rose 7 percent after a brokerage upgraded the stock two notches to "outperform" citing positive demand trends in consumer and networking markets.

Jabil Circuit sales are benefiting more than the Wall Street is anticipating from improved production trends in consumer and enterprise products for customers such as Cisco (CSCO.O), Hewlett-Packard (HPQ.N), Philips, RIM (RIMM.O) (RIM.TO) and Whirlpool, analyst Steven Fox at Calyon Securities said.

Fox raised his price target on the Jabil stock to $14 from $8.

"Recent positive comments out of Molex (MOLX.O), where a positive pre-announcement was driven by rising consumer demand, added to our belief that Jabil's outlook will push consensus estimates much higher," Fox said.

Corporate enterprise demand appears on firmer footing, which could bode well for the company's computing and storage segment, the analyst said.

Jabil shares were up 3 percent at $12.73 Wednesday morning on the New York Stock Exchange. They touched a year-high of $13.15 earlier.

(Reporting by Mansi Dutta in Bangalore; Editing by Ratul Ray Chaudhuri)

((mansi.dutta@thomsonreuters.com; within U.S. +1 646 223 8780;outside U.S. +91 80 4135 5800; Reuters Messaging: mansi.dutta.thomsonreuters.com@reuters.net)) Keywords: JABILCIRCUIT/

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