Avnet (AVT – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Ruplu Bhattacharya from Bank of America Securities reiterated a Sell rating on the stock and has a $48.00 price target.
Ruplu Bhattacharya has given his Sell rating due to a combination of factors affecting Avnet’s performance. The company’s recent quarterly results showed mixed outcomes, with better-than-expected performance in Asia and Farnell, but ongoing weaknesses in Europe and slightly lower sales in the Americas. Additionally, Avnet’s guidance for the upcoming quarter falls below market expectations, indicating potential challenges ahead.
Furthermore, the company faces operational challenges, such as negative geographic sales mix and margin pressures, particularly in the Electronic Components and Farnell segments. The macroeconomic environment remains weak, and Avnet is experiencing inventory corrections and margin pressures. These factors contribute to Bhattacharya’s cautious outlook, leading to the reiteration of an Underperform rating and a price objective of $48, which is below the current market price.
AVT’s price has also changed slightly for the past six months – from $54.580 to $50.060, which is a -8.28% drop .