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Barclays starts ScanSource at Equal Weight, sees modest margin improvement

Barclays analyst Guy Hardwick initiated coverage of ScanSource (SCSC) with an Equal Weight rating and $43 price target The firm likes the company’s hybrid distribution model and management’s focus on raising recurring revenue. However, due to continued competitive pressures in the technology services distribution market and the company’s investment in its sales channels, the firm expects only modest margin improvement in FY26.

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