Jabil (JBL) is likely well placed in various end markets and its warrant issue to e-commerce giant Amazon.com (AMZN) signals strong revenue growth potential in the future, BofA Securities said Tuesday.

BofA said it recently hosted investor meetings with the manufacturing solutions provider's management.

"While there were no updates to guidance, we walked away confident in multiple avenues for growth, including cloud, semi-cap, healthcare, and in the longer-term EVs," BofA analyst Ruplu Bhattacharya said in a note to clients. "The business is aligned in all the right end markets, and as revenue recovers and margins improve further, we can see the trading multiple rerate even higher."

Jabil recently issued a warrant to Amazon to purchase up to 1.16 million shares at an exercise price of $137.76 apiece.

"In our opinion, this warrant incentivizes Amazon to deepen the relationship with Jabil and to give the company more business," Bhattacharya said. "Amazon can benefit from the equity appreciation of JBL stock."

BofA raised its price objective on the Jabil stock to $180 from $165 while reiterating its buy rating.

The company's shares were up 3.1% in recent trading.

Price: 167.92, Change: +5.02, Percent Change: +3.08