Brean Capital Raises Price Target on Arrow Electronics (ARW) Following 1Q

Brean Capital reiterated a Buy rating on Arrow Electronics (NYSE: ARW), and raised the price target to $68.00 (from $62.00), following the company's 1Q earnings report. ARW reported sales and EPS of $5.47B and $1.43, coming in ahead of the Street's $5.46B and $1.40 estimates. Management expects Jun Q sales of $5.83B - $6.23B with Global Components sales of $3.75B - $3.95B and Global ECS of $2.08B - $2.28B.

Analyst Ananda Baruah commented, "After seeing ARW's print we had two thoughts - 1) wow, what a difference market positioning can make and 2) we wonder what this means for TECD? More specifically, ARW called out both Enterprise (including Software and on premise Cloud type and advanced solutions) as well as Europe as areas of strength. Currently ARW and TECD ($63.62, Buy) have been both the best positioned and strongest operators of the Disti's, and as such with 60% of revenue in Europe and an even larger well-positioned Datacenter business than ARW, we wonder if TECD can benefit from the same dynamics. Our $68 TP (up from $62) is 9x our CY17E EPS."

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 $59.22 yesterday.

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