Bank Of America Boosts Rating On Ingram Micro, Shares Up 3%
Ingram Micro (NYSE: IM) shares rose more than three percent after Bank of America posted a two-notch upgrade Wednesday, citing a widening margin and better-than-expected market for personal computers.
Bank of America's Scott Craig boosted his target from $28 to $36 and moved his rating from Underperform to Buy. The average Wall Street target price is $33.09.
Ingram, a wholesale distributor of computer components, is benefiting from an upgrade cycle in personal computers accelerated by the April expiration of Windows XP support.
"We think it should provide a tailwind for at least the next few quarters," said Craig, who estimates 25 percent of Ingram's revenue is derived from the personal computer market.
Also singled out are improving margins stemming from restructuring in Europe and an improved product mix.
Craig forecast the electronic components wholesale marketer and distributor will earn $3.07 per share in fiscal 2015, up from his previous estimate of $2.94.
Analysts on average call for 2015 earnings of $3.02 per share.
Ingram traded recently at $29.90 per share, up 3.7 percent.
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