Brean Murray Carret: Tech Data's Stock Digests Gains, Remains a Secular Favorite

In a research report published today by Brean Murray Carret, Tech Data Corp. TECD delivered a solid January quarter with revenue of $7.11B in-line with the Street of $7.16B. Brean Murray Carret commented in the report, “Entering the call, Street revenue and EPS for CY13 were $26.8B and $5.74, which we believe will move lower after the call – according to TECD, flat revenue growth in local currencies implies an approximate $330M decline in the Apr Q and $1.2B for FY13, representing a year-over-year decline of 5.2% and 4.5% in the Apr Q and FY13, respectively. Given the stronger OM leverage moving through 2013, we're slightly lifting our CY12 (FY13) EPS to $5.50 from $5.40, and our $61 target price is 9x ex-$10 net cash our CY12 (FY13) EPS of $5.50.” Brean Murray Carret maintains its Buy rating and $61 PT on Tech Data, which closed yesterday at $53.99.