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Needham & Company Downgrades Ingram Micro (IM) to Hold; Solid Q4, But Shares Priced to Perfection

February 9, 2012 10:27 AM EST
IM Hot Sheet
Rating Summary:
    2 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Needham & Company downgraded Ingram Micro (NYSE: IM) from Buy to Hold.

Analyst, Richard Kugele, said, "Ingram Micro posted a solid 4Q last night, however, in our view, the outlook is muted by anemic IT spending and the absence of HDD inventory purchased at low prices. In advance of the earnings report, and along with the strong broader market, IM’s stock has increased materially YTD and was trading above our $20 PT after hours. Unable to increase our estimates meaningfully (and thereby our price target) we are downgrading IM to Hold."

"Further, if the company does dee-mphasize stock buyback (as it appears to be) vs. internal investments and M&A, the stock may lack near-term catalysts to drive gains."

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 $19.72 yesterday, with a 52 week range of $15.45-$21.63.


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