UPDATE: Morgan Stanley Downgrades CDW Corporation (CDW) to Equalweight Citing Valuation and Revenue Exposure to PCs
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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."
Shares of CDW Corporation closed at $184.13 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesMorgan Stanley, Earnings, Katy Huberty
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