BofA cuts Arrow Electronics to Underperform with weakness seen lingering

BofA downgraded Arrow Electronics (ARW) to Underperform from Neutral with a price target of $99, down from $133. While Arrow reported a “strong” Q4, guidance for fiscal Q1 was “meaningfully below” expectations on revenue and earnings, notes the analyst, whose earnings estimate for calendar year 2025 moves “meaningfully lower” to $10.25 from $13.65. Management says it is seeing some datapoints that are encouraging, including improving book to bill, and although excess inventory in the channel is gradually reducing, the firm sees the next several quarters as “weak,” the analyst tells investors.