Tech Data Hits a New 52-Week High - Analyst Blog

Shares of Tech Data Corporation TECD attained a new 52-week high of $62.59 on Apr 2, 2014. The bullish run reflects Tech Data's partnership with Google GOOG and Cisco CSCO.

The closing price of Tech Data on Apr 2 was $62.59, which represented a strong one-year return of about 38.7% and a year-to-date return of about 23.0%.

This Zacks Rank #3 (Hold) stock has a market cap of $2.35 billion and long-term expected earnings growth rate of 4.0%.


Growth Drivers

Tech Data recently entered into a partnership with Google to manage the supply chain of Google's indirect channel across Europe for its Chromecast media streaming device. We believe that this association with Google will expand its customer base, which in turn will drive growth and profitability going forward.

Tech Data also launched the SMARTattach Portal designed to help all Tech Data authorized resellers to expand and accelerate their Cisco services practice. This in turn is expected to drive strong revenue growth in the near term.

We believe that the company's partnerships with Cisco, Apple AAPL, Google and Hewlett-Packard will drive its top-line growth, going forward. Tech Data's improving execution (particularly in Europe), superior customer service and improving market share in the Americas are the major positives, going ahead.

Estimate Revisions

The Zacks Consensus Estimate for the fourth quarter of 2014 remained steady at $1.95 over the past 30 days. Estimates for fiscal 2014 and 2015 also remained unchanged at $4.38 and $5.14, respectively over the same time frame.