UPDATE: Citigroup Raises Target to $40 on Avnet

Citigroup maintains its Buy rating on Avnet AVT and raises its price target by $2 to $40 a share as the company delivers beat for 4Q and guides in-line for next quarter. Citigroup lists key positives on the company's reporting: "1) AVT beat consensus EPS estimates in the December quarter and guided for an inline March quarter. Considering the choppy macro backdrop, we view this as a positive. 2) TS operating margins of 3.8% improved 135bps q/q & 55bps y/y on higher sales & now are within the company's target range for the first time in 2 year. 3) Higher HDD ASPs due to product shortages following the Thailand flood disruptions favorably impacted the December quarter by an estimated $0.05-$0.07." AVT closed at $33.60 a share on Thursday. A