Goldman Sachs Maintains a 'Neutral' on Ingram Micro (IM); Overhangs Persist; Maybe Better Served with Buyback/Dividend
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Price: $18.13 --0%
Rating Summary:
2 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
2 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Trade IM Now!
Goldman Sachs maintains a 'Neutral' on Ingram Micro (NYSE: IM) price target of $17.00.
Analyst, Craig Hettenbach, said that Ingram's $840 million acquisition of BrightPoint (Nasdaq: CELL) would be the company's largest ever deal, but consistent with IM's new CEO's stated intention of acquiring to drive growth. Hettenbach remains concerned however, citing: 1) the size of the acquisition versus stock buyback/dividend; and 2) issues with CELL's exposure to Nokia (NYSE: NOK) (~27% of 2011 sales) and Research in Motion (Nasdaq: RIMM) at 20%.
Goldman currently doesn't hold any Buy-ratings on stocks in the distribution space and notes that BrightPoint's peer, Avnet (NYSE: AVT) announced the acquisition of Magirus. However, Goldman feels investors would be better served if these companies used funds to buyback stock or pay dividends.
For an analyst ratings summary and ratings history on Ingram Micro click here. For more ratings news on Ingram Micro click here.
Shares of Ingram Micro closed at $17.55 yesterday, with a 52 week range of $15.45-$19.80.
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Analyst, Craig Hettenbach, said that Ingram's $840 million acquisition of BrightPoint (Nasdaq: CELL) would be the company's largest ever deal, but consistent with IM's new CEO's stated intention of acquiring to drive growth. Hettenbach remains concerned however, citing: 1) the size of the acquisition versus stock buyback/dividend; and 2) issues with CELL's exposure to Nokia (NYSE: NOK) (~27% of 2011 sales) and Research in Motion (Nasdaq: RIMM) at 20%.
Goldman currently doesn't hold any Buy-ratings on stocks in the distribution space and notes that BrightPoint's peer, Avnet (NYSE: AVT) announced the acquisition of Magirus. However, Goldman feels investors would be better served if these companies used funds to buyback stock or pay dividends.
For an analyst ratings summary and ratings history on Ingram Micro click here. For more ratings news on Ingram Micro click here.
Shares of Ingram Micro closed at $17.55 yesterday, with a 52 week range of $15.45-$19.80.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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