Avnet price target raised to $50 from $45 at Stifel

Stifel raised the firm’s price target on Avnet to $50 from $45 and keeps a Hold rating on the shares. Avnet’s Q4 results and Q1 guidance were significantly better than expected, with the beat largely due to continued demand strength in EMEA, which grew 18.7% y/y, and North America, which was up 7.1% y/y, the analyst tells investors in a research note. The firm expects the inventory correction to persist through much of Avnet’s FY24, with likely margin erosion due to topline pressure and negative mix.