RBC Capital analyst Mitch Steves raised his price target on Sanmina to $33 after its Q1 earnings beat and better than expected outlook for Q2, saying the strength in the quarter was evident across all end markets. The analyst also cites the company's view of pent-up demand and improving lead times, along with higher exposure to the communications industry which appears to be coming out of a trough. Steves keeps his Sector Perform rating on Sanmina however and warns that the company "has a history of mixed revenue execution relative to guidance", adding that he would consider a more constructive view if it can sustain revenue growth and lift margins above 4%.