UPDATE: Brean Murray Carret Lowers PT to $60 on Tech Data on Softer Margins
Brean Murray Carret reiterated its Buy rating on Tech Data (NASDAQ: TECD) but reduced its price target from $61 to $60.
Brean Murray Carret said, "Slight revenue beat was offset by soft margins, althogh TECD should see immediate improvement. Stock was off ~6% yesterday in trading. TECD generated revenue and EPS of $5.96B and $0.88 vs. Street of $5.83B and $1.17. The biggest story for the Q was GM of 5.05% which was 30bp softer than our estimate – the biggest culprit (50% of the GM miss) was a hiccup surrounding TECD's Americas SAP implementation (now completed), which impacted deal pricing / mix / volume (and subsequently GM rebates). We're lowering our FY13 / CY12 EPS to $5.41 from $5.90 and our target to $60 from $61."
Tech Data closed at $49.24 on Tuesday.
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