Citi opens ‘positive catalyst watch’ on CDW after underperformance

Citi opened a “90-day positive catalyst watch” on shares of CDW while keeping a Buy rating on the shares. CDW has underperformed the broader Tech Hardware index despite an improving outlook provided at its last quarter earnings call, the analyst tells investors in a research note. The firm says preliminary reports from peers point toward demand improvement in North America, which is 87% of of CDW’s total sales, with strength in small business, government and education spend, and stabilizing demands trends in enterprise. This augurs well for estimate revisions and share performance ahead for CDW, contends Citi.