Joseph Quatrochi, an analyst from Wells Fargo, maintained the Sell rating on Avnet. The associated price target is $43.00.
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Joseph Quatrochi has given his Sell rating due to a combination of factors impacting Avnet’s financial outlook. Despite signs of demand recovery, particularly in Asia, the company’s earnings per share estimates have been lowered due to ongoing margin pressure from an unfavorable mix. The stabilization of Avnet’s EBIT% remains a concern, as it has reached its lowest level since 2021, influenced by geographic mix and foreign exchange impacts.
Additionally, while Avnet is optimistic about its working capital and cash flow position, there are still challenges with inventory levels and days inventory outstanding. The company’s guidance for the upcoming quarter shows a revenue forecast slightly above expectations, but the non-GAAP EPS guidance falls short of analyst estimates. These factors collectively contribute to a cautious outlook, prompting the Sell rating.
AVT’s price has also changed slightly for the past six months – from $50.480 to $49.460, which is a -2.02% drop .