UPDATE: Citigroup Reiterates a Buy rating on Arrow Electric

Citigroup reiterates its Buy rating and a $47 price target on Arrow Electric

. Citi remarks, “Arrow remains focused on meeting long term operating income margin goals which for Global Components are in the range 5.3%-6.6% and for Global ECS are in the range 4.3%-5.0%. Asia Component margins are currently below the targeted range and ARW believes higher sales and better mix will drive improvement. Europe ECS margins are also below the targeted range and ARW is focused on cost saving and revenue expansion. In our view, Arrow is controlling what it can. 2) Inventory levels throughout the supply chain appear healthy. In an environment with normalized lead times, we believe there is no reason for ARW to grow component inventories faster than sales & would become alarmed if this was the case in the near term.” Arrow Electric closed at $33.07 on Thursday.