UPDATE: Morgan Stanley Downgrades CDW Corporation (CDW) to Equalweight Citing Valuation and Revenue Exposure to PCs

October 6, 2021 4:13 AM EDT
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Price: $191.54 +0.04%

Rating Summary:
    11 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 14 | New: 48
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(Updated - October 6, 2021 4:23 AM EDT)

Morgan Stanley analyst Katy Huberty downgraded CDW Corporation (NASDAQ: CDW) from Overweight to Equalweight with a price target of $196.00 (from $208.00).

The analyst comments "Today, we downgrade CDW from OW to EW due to near-record valuation and ~45% revenue exposure to PCs. While we are still bullish on CDW's longer-term outlook as a pure-play on US IT spend, the combination of a further mid-cycle multiple de-rating and moderating PC growth limiting positive earnings revisions leaves us more cautious nearterm, and we take our price target on CDW to $196 from $208. While Dell remains one of our top OW picks, with the potential for Dell core re-rating post the VMware spin, durable growth story, and conservative financial outlook, we will be watching demand data closely given the company's 50%+ revenue exposure to PC."

For an analyst ratings summary and ratings history on CDW Corporation click here. For more ratings news on CDW Corporation click here.

Shares of CDW Corporation closed at $184.13 yesterday.

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