Barclays analyst Guy Hardwick initiated coverage of ScanSource (SCSC) with an Equal Weight rating and $43 price target The firm is positive on the company’s hybrid distribution model as it aims to drive gross profit faster than operating expense growth and improve its free cash flow conversion, the analyst tells investors in a research note, further noting that ScanSource strategy will raise EBITDA margins and deliver more predictable cash flow over time. Given ongoing competitive pressures in the agency technology services distribution market and the company’s investment in its sales force however Barclays models only a modest 10bps in improvement in FY26 EBITDA margin to 4.9%, the firm added.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on SCSC:
- ScanSource initiated with an Equal Weight at Barclays
- ScanSource Inc’s Earnings Call: Mixed Results and Optimistic Outlook
- ScanSource, Inc. Reports Strong Q4 Results
- Walmart reports mixed Q2, Thoma Bravo to acquire Dayforce: Morning Buzz
- Morning Movers: Walmart lower following Q2 earnings miss and guidance raise