Distribution Solutions price target raised to $36 from $34 at Barrington

Barrington raised the firm’s price target on Distribution Solutions to $36 from $34 and keeps an Outperform rating on the shares. While Q4/2023 headwinds are expected to continue in Q1/2024, a return to growth is anticipated in the second half of 2024, the firm says. Regarding Q1, management noted that results will continue to compare against a difficult organic growth comparison of 13.7% in Q1 2023. Due to the difficult comparison and the continuation of specific end-market headwinds, management is forecasting an organic revenue decline in the mid-single digits during Q1 2024, similar to the organic performance in Q4 2023, Barrington adds. Results will continue to benefit from the June 2023 acquisition of Hisco, so the firm is forecasting total revenue growth of 19.8% in Q1 2024.