Yesterday, SANM announced a major expansion of its Energy business with a new, state-of-the-art factory in Houston, TX. The factory will focus on the U.S. energy market, with production expected to commence in 2027 and initial customer commitments already in place. We do not think yesterday's 7% drop in SANM's share price (compared to the Russell 2000 Index's contraction of 0.5%) was warranted. We view yesterday's news as positive. At the facility, SANM will be able to build a broad range of high-quality energy products aiding in the transmission, distribution and storage of electric power. The company also announced it has partnered with Koncar – Electrical Industry Inc. (foreign) to co-design a custom medium-voltage transformer for Sanmina and explore further partnership opportunities in support of Koncar's expansion plans for the U.S. market. We view these announcements as testaments to management's aspiration to double revenue in two years, aided by the acquisition of ZT Systems and the vast opportunities in data center and AI infrastructure build-out. We are further encouraged by the company's margin target of 6%-7% longer term, which, along with debt reduction and a return to more aggressive buybacks, would create further earnings power. SANM closed F2025 with almost $1 billion in cash and has expanded its revolver, providing ample liquidity. While it levered up for the ZT Systems acquisition, management has noted it is targeting a return to a net leverage ratio of 1x-2x. To derive our $200 price target, we apply a 21x multiple to our F2027 EPS projection of $9.53. Our moderate risk rating reflects Sanmina's sustained profitability, cash flow generation and industry-leading balance sheet.