Avnet downgraded to Underperform at BofA on weak demand environment

As previously reported, BofA downgraded Avnet (AVT) to Underperform from Neutral with a price target of $48, down from $58. The firm sees the demand environment being weak for the next few quarters, especially in Europe, and thinks it will probably take a few quarters to clear the excess inventory it sees remaining in the channel, the analyst tells investors. While the current valuation is “not expensive,” BofA sees Avnet as “a relative underperform” as revenues and margins remain negatively impacted in the near-term by these dynamics, the analyst added.