Avnet’s Analyst Day Should Highlight Strong Business Trends
December 14, 2009 11:52 AM
Analysts at Goldman Sachs maintain their “Neutral” rating Avnet, Inc. (NYSE: AVT)(FREE stock trend analysis), ahead of Avnet’s Analyst Day on Thursday, December 17. The price target is set to $31.
The firm says “We will be attending Avnet’s Analyst Day on Thursday, December 17, where we expect the tone to be positive, with a chance that the company will indicate that it is tracking above the mid point and toward the higher end of its December quarter targets. While we remain Neutral rated on Avnet shares, upside to estimates and a positive inflection in gross margin in 2010 should help keep a bid in the stock.”
They also say “In addition to an in depth overview of its components and systems business, at its analyst day we think management will highlight the following:
1) Strong balance sheet and increasing appetite for M&A;
2) Gross margin pressure to level out, with margins poised to expand in CY10; and
3) Strong operating leverage post cost cutting.
Today, AVT is up 0.56% to $28.55.
