UBS Maintains a 'Buy' on Arrow Electronics (ARW); Raising Numbers After Constructive Meeting with Mgmt

UBS maintains a 'Buy' on Arrow Electronics (NYSE: ARW) price target raised from $44 to $48.

UBS analyst said, "We hosted client meetings with ARW and believe business is tracking in line to modestly better with a little more vitality in APAC post CNY; Europe still lumpy; and NA stable. Within Europe, Italy has seen some pickup; Germany remains healthy; and UK/Nordic/France stable. Inventory rebalancing appears to be nearing an end, but demand outlook is still murky. We modestly raise our below-street ests with CY12/CY13 EPS to $4.96/$5.45 (was $4.80/$5.23; consensus $4.95/$5.45)."

"Capital allocation priorities remain largely the same: organic growth, M&A, share buy-backs, and ultimately dividends. We believe ARW is open to paying dividends though any such development is likely 2-3 yrs out. After disappointing FCF in 2011, we were comforted to hear ARW feels it can convert 70% of its NI to FCF in 2012 (and beyond), implying ~$400m of FCF for 2012 (in line with UBSe $448m)."

For an analyst ratings summary and ratings history on Arrow Electronics click here. For more ratings news on Arrow Electronics click here.

Shares of Arrow Electronics closed at $41.26 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• Va Tech Wabag Ltd. (VATW:IN) PT Raised to INR2,410 at ICICI Securities