Brean Capital analyst Ananda Baruah reiterated a Buy rating and raised the price target on Avnet (NYSE: AVT) to $50.00 (from $49.00) following solid Q4 results.

Baruah commented, "AVT delivered very solid operating leverage and appears to be tracking ahead of its margin expansion goals. We’re raising our TP to $50 from $49 (15% appreciation) or 10x our CY16 EPS of $5.10. AVT reiterated its view of expanding OM’s 50 - 100bps L-T from 3.5% in FY15. Specifically, this will be driven by 30 – 50bps from growth in 1) embedded and converged systems, IoT and Cloud, 2) 30 – 50bps from enterprise effectiveness, and 3) 10 – 20 bps in volume / leverage. AVT remains laser-focused on working towards its Tech Solutions (TS) Operating Margin target of 3.4% - 3.9%. We believe the lion’s share of expansion from current levels will come from EMEA, which could amount to ~100 bps of EMEA OM expansion potential (or ~30 bps to total TS margins). Initiatives in EMEA include: 1) previously announced S-T cost reductions, and 2) transformational L-T initiatives, driven by the recent consolidation of 4 ERP systems into 1."

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Shares of Avnet closed at $43.85 yesterday.