Flex Ltd has staged a reversal from its recent downtrend, and according to Malacca Securities Research the stock rebounded off support at USD104.02 before breaking above its consolidation zone. The research house’s report, titled Powering the Next AI Wave and dated 7 October 2026, frames the move as a combination of improving momentum and AI-led earnings acceleration.
Technical picture: a breakout above the moving averages
The research house noted that the RSI has risen into bullish territory while MACDV remains positive, both supportive signals for the near-term trend. Flex’s share price has also crossed above its converging 20-, 60- and 120-day EMAs, and it sits comfortably above the 200-day EMA, which Malacca Securities reads as a strengthening medium- to long-term trend.
Key financial numbers behind the call
Flex’s Q1FY27 revenue rose 21% YoY to USD7.9bn, according to the research house, while adjusted EPS hit a record USD1.00. Management raised FY27 adjusted EPS guidance to USD4.42 to USD4.74, which Malacca Securities notes implies 39% YoY growth at the midpoint.
The research house attributes that acceleration to continued strength in AI infrastructure demand. Revenue growth and margin expansion are the two numbers the report points to as the test of whether the guidance holds.
Valuation basis and the two corporate catalysts
Malacca Securities identifies two corporate events as additional catalysts. The first is a USD4.4bn acquisition of EPC Power, expected to close in 4QCY26, which the research house says strengthens Flex’s power-conversion capabilities and its exposure to next-generation 800V data-centre power architecture.
The second is the planned spin-off of Axiom, targeted for 1QCY27. A USD2.0bn convertible preferred investment led by General Catalyst and Koch Equity Development values Axiom at an initial enterprise value of USD37.5bn. The research team said Flex’s 10 November Innovation Day could clarify Axiom’s standalone strategy, financial profile and potential value.
The report summary available for this article does not spell out the valuation methodology or the target price. Those details sit in the full document from M+ Online.
Risks flagged and what is missing from the summary
The summary centres the outlook on AI infrastructure demand, so any slowdown in that spending would sit at the heart of the risk to the earnings case. Execution on the USD4.4bn EPC Power deal and the timing of the Axiom spin-off are the two corporate milestones that could shift the story.
Specific risk disclosures, sensitivity analysis and the rating itself are not reproduced in the summary used here. Readers should consult the full research report for those points.
What This Means for Retail Investors
For retail investors, the research house’s note is a snapshot of how an analyst team reads Flex’s technical and fundamental setup, not a recommendation to act. The gap between a record quarterly EPS and a guidance raise is the figure to track in upcoming results. The 10 November Innovation Day and the 4QCY26 EPC Power closing are dated events that will test the thesis.
Key Takeaways
- Malacca Securities Research sees a breakout above consolidation after a rebound off USD104.02 support.
- Q1FY27 revenue rose 21% YoY to USD7.9bn, with record adjusted EPS of USD1.00.
- FY27 adjusted EPS guidance was raised to USD4.42 to USD4.74, implying 39% growth at the midpoint.
- The USD4.4bn EPC Power acquisition is expected to close in 4QCY26.
- Axiom’s initial enterprise value is USD37.5bn, with the spin-off targeted for 1QCY27.
Frequently Asked Questions
What is Malacca Securities’ target price for Flex Ltd?
The summary of the Malacca Securities report available for this article does not state a target price, so no figure is cited here. The full research report, available from M+ Online, contains the rating and valuation basis.
How much did Flex Ltd’s revenue grow in Q1FY27?
According to Malacca Securities Research, Flex’s Q1FY27 revenue rose 21% YoY to USD7.9bn. The research house linked that growth to continued strength in AI infrastructure demand.
What is the Axiom spin-off worth according to the report?
The research house noted that a USD2.0bn convertible preferred investment values Axiom at an initial enterprise value of USD37.5bn. The spin-off is targeted for 1QCY27, and the 10 November Innovation Day may provide more detail.
Where can I read the full Malacca Securities report on Flex Ltd?
The full report, titled Powering the Next AI Wave, is available from M+ Online. The summary used for this article does not reproduce every figure, so the complete document is the primary source.
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 07 October 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.
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