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UPDATE: Bank of America Downgrades Ingram Micro to Underperform

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Bank of America reduced its rating on Ingram Micro (NYSE: IM) from Neutral to Underperform and lowered its price objective from $16 to $14.50.

Bank of America noted, "We are downgrading Ingram Micro to Underperform on risk around Bright Point integration, industry margin pressure and execution. While the valuation is attractive, we are becoming more negative and can reassess when some of the risks clear. We believe Bright Point makes sense strategically (higher growth and profitability markets), although we are concerned with its current portfolio (Nokia 27% of distribution units, RIM 20%, HTC 15% in C2011), challenges in gaining share at vendors like Samsung (19%), and lack of iPhone. We are also concerned around the margin pressure from competitive pricing, mix, continued investments and execution (incl. Australia)."

Ingram Micro closed at $15.30 on Thursday.

Latest Ratings for IM

DateFirmActionFromTo
Jul 2015CitigroupMaintainsBuy
May 2015Stifel NicolausMaintainsBuy
Mar 2015BarclaysDowngradesOverweightEqual-weight

View More Analyst Ratings for IM
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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