FLEX reports July-Q operating EPS of $0.19 (excluding $0.05 of acquisition-related and other expenses), versus $0.08 (excluding $0.27), which, after including stock-based compensation expense, we view as being in line with our $0.18 estimate. Revenues rose 14%, reflecting an EMS industry expansion that we project will continue into 2012. We are maintaining our operating EPS estimates of $0.85 for FY 11 (Mar) and $1.10 for FY 12. Employing a lower peer-based target P/E multiple in our valuation, we are reducing our 12-month target price to $9 from $11.