BofA Securities on Ingram Micro (INGM): 'Outlook optimistic despite challenging environment'

BofA Securities analyst Ruplu Bhattacharya reiterated a Buy rating and $28.00 price target on Ingram Micro (NYSE: INGM)

The analyst comments "We recently hosted client meetings (virtual) with CFO Michael Zilis and Willa McManmon, VP of Investor Relations. Client questions focused on tariffs which are passthrough for Ingram. With over 1,500 vendors, the company can likely find alternative sourcing if one vendor faces tariff-related headwinds. The bigger concern would be if tariffs lead to a recession. Currently, mgmt is seeing strength at large enterprise, and SMB typically follows but with a lag. Ingram is seeing some encouraging trends at SMB where the company benefits from a higher attach of higher margin services. Pricing overall remains rational except for certain regions like India (where competition is much higher); but even there Ingram continues to see decent growth even while walking away from some low margin opportunities. Reiterate Buy on improving trends in client/endpoint solutions, and advanced solutions (server, storage, networking), and continued strength in Cloud. No change to estimates. Our PO of $28 is based on 9x our C26 EPS of $3.27."

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 $19.31 yesterday.

You May Also Be Interested In

• Correction: Kepler Cheuvreux Upgrades Siemens AG (SIE:GR) (SIEGY) to Hold
• Berenberg Starts Brooks Macdonald Group PLC (BRK:LN) at Buy
• Morgan Stanley Upgrades Galp Energia SGPS SA (GALP:LI) (GLPEF) to Overweight