02:50 PM EDT, 05/03/2024 (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 up our 12-month target to $131 from $121 based on a P/E of 8x our '25 EPS view, near distributor peers. We cut our '24 EPS estimate to $11.15 from $12.05 and up '25's to $16.32 from $16.14. ARW posted Q1 EPS of $2.41 vs. $4.60, beating consensus by $0.04. Revenue declined 21% driven by an 8% drop in Global Components sales amid semiconductor inventory correction. Enterprise computing also fell 8% due to product mix and lower North American IT spend. We expect near-term weakness in Europe and North America from soft customer spend, but strength in aerospace and defense verticals is encouraging. Gross margin contracted 20 bps to 12.5% on Global Components mix. ROIC was also down 620 bps to 8.4% on lower operating income in global components. ARW is positioned to benefit from momentum in infrastructure software, next-gen hardware, and hybrid cloud, but its high leverage (net debt of $3.5 billion) leaves little room for error, given risks like supply/demand imbalances, unfavorable mix shifts, and rising rates.