Adam Tindle, an analyst from Raymond James, maintained the Buy rating on CDW. The associated price target is $185.00.
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Adam Tindle has given his Buy rating due to a combination of factors that suggest a promising outlook for CDW. Firstly, he anticipates a period of growth acceleration reminiscent of past stock outperformance, which could lead to significant gains. Additionally, cost challenges are expected to diminish, paving the way for improved profitability and potentially reversing the recent contraction in valuation multiples.
Moreover, Tindle sees CDW as well-positioned to benefit from the broader deployment of AI, particularly among its core mid-market and SMB customer base. This could enhance CDW’s role as a trusted advisor, potentially boosting its valuation multiples. Furthermore, macroeconomic factors similar to those following the 2017 Tax Cuts & Jobs Act could provide a tailwind, enhancing organic growth. Lastly, CDW’s aggressive share buyback strategy and potential for further capital returns add to the investment appeal.