CDW Corporation (CDW) PT Raised to $60 at Needham & Company Following 4Q Report

Needham & Company raised its price target on CDW Corporation (NASDAQ: CDW) to $60.00 (from $50.00) while maintaining a Buy rating. CDW reported 4Q results this morning, with rev of $3.5B, Adjusted EBITDA of $273.7M, and NG EPS of $0.86. Consensus was $3.5B/$262.6M/$0.81.

Analyst Richard Kugele commented, "Driven by strong Public and Small business spending as well as an impressive performance internationally, CDW ended 2016 on a strong note, easily exceeding consensus earnings estimates. Looking into 2017, the company sees positive commentary from it small business customers driving improved IT spending in the US (of 2-3% growth vs. 1.6% in 2016), with CDW continuing to outpace that level by 200-300 bps. We believe this cautious optimism outlook could be materially exceeded driven by years of underinvestment by Medium/Large enterprises, and delayed Federal/e-rate spending. We reiterate our Buy and increase our target to $60 from $50 based on ~15-16x C17 EPS of $3.86."

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