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Research Alert: CFRA Maintains Hold Opinion On Shares Of Arrow Electronics, Inc.

05/07/2021 10:59

02:55 PM EDT, 05/07/2021 (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:

Our 12-month target of $125 (from $105), 10.8x our 2021 EPS estimate, is aligned with component distributors. We boost our 2021 EPS to $11.60 from $9.94 and 2022's EPS to $12.25 from $10.19. ARW prints Q1 EPS of $2.84 vs. $0.97, exceeding consensus by $0.54, helped by favorable FX ($0.13 boost). First-quarter sales came in at $8.39 billion (up 31% Y/Y), exceeding consensus by $389 million, highlighted by strong performance in Global Components (up 42% Y/Y). ARW's sequential outlook now calls for consolidated sales and adj-EPS to remain near record levels and slightly above Q1 levels at respective midpoints. Demand for components has been extremely encouraging, but we fear fundamental prospects could be peaking; although limited ability to add capacity could suppress double-ordering from customers, our sense is inventory limitations could become a bottleneck to meeting future demand. Improved cash cycle days (better by 10 to 46 days) helped meet strong order patterns and limited cash burn to $5M in Q1.