Research Alert: CFRA Maintains Hold Opinion On Shares Of Arrow Electronics, Inc.
12:05 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price to $105 from $82, 10.6x our 2021 EPS estimate, aligned with component distributors. We boost our 2021 EPS to $9.94 from $7.98 and introduce 2022's at $10.19. ARW prints Q4 adjusted EPS of $3.17 vs. $2.20, exceeding consensus by $0.50, aided by favorable FX and lower effective tax. Q4 sales came in at $8.45 billion, higher by 13%, and easily clearing consensus by $732 million. Global Components was the main contributor to the top-line beat (up 25%), led by robust sales in Asia (up 53%), as demand for transportation and wireless remained elevated. Forward indicators are solid, with a healthy backlog and limited double ordering across all regions. However, with inventories now resting at suppressed levels last seen in 2015, price inflation has become a key theme. We think ARW will need to pass along price increases effectively and see a snapback in higher-margin regions (e.g., Americas) to capture further operating leverage and for shares to grind materially higher from here.