Credit Suisse Raises Price Target, Estimates on Arrow (ARW); Difficult to Calculate Japan Impact
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Price: $204.43 +0.25%
Rating Summary:
5 Buy, 8 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 36
Rating Summary:
5 Buy, 8 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 36
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Credit Suisse maintained its Neutral rating on Arrow Electronics Inc. (NYSE: ARW) following the recent acquisition close of the Wireless and Power Division of Richardson Electronics, Ltd. (NASDAQ: RELL),
The raised is price target on the stock modestly from $42 to $43.
The division had sales of ~$350 million in 2010, which ARW believes will add an additional $0.10-$0.20 to its EPS in the full year. The firm is raising its EPS estimates for CY11 from $4.97 to $5.07, CY12 from $5.31 to $5.43, and CY13 from $5.60 to $5.73.
Credit Suisse said its very unclear how the disaster in Japan is affecting ARW's operations and earnings. The company runs three sales and marketing offices in Japan, which account for less than 1% of the company's total sales. ARW has not released any information on the topic and it is very difficult to calculate it.
Credit Suisse added, "For many of our covered companies we could argue for near-term downside or upside. In this environment the distributors may be a safe haven owing to their inventory ownership combined with reasonable valuations. Longer-term we favor Agilent Technologies (NYSE: A), TE Connectivity (NYSE: TEL), Harmonic Inc. (NASDAQ: HLIT), and Finisar Corp. (NASDAQ: FNSR).
The raised is price target on the stock modestly from $42 to $43.
The division had sales of ~$350 million in 2010, which ARW believes will add an additional $0.10-$0.20 to its EPS in the full year. The firm is raising its EPS estimates for CY11 from $4.97 to $5.07, CY12 from $5.31 to $5.43, and CY13 from $5.60 to $5.73.
Credit Suisse said its very unclear how the disaster in Japan is affecting ARW's operations and earnings. The company runs three sales and marketing offices in Japan, which account for less than 1% of the company's total sales. ARW has not released any information on the topic and it is very difficult to calculate it.
Credit Suisse added, "For many of our covered companies we could argue for near-term downside or upside. In this environment the distributors may be a safe haven owing to their inventory ownership combined with reasonable valuations. Longer-term we favor Agilent Technologies (NYSE: A), TE Connectivity (NYSE: TEL), Harmonic Inc. (NASDAQ: HLIT), and Finisar Corp. (NASDAQ: FNSR).
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