UPDATE: KeyBanc Capital Markets Downgrades ScanSource to Hold on Lack of Catalysts

KeyBanc Capital Markets reduced its rating on ScanSource SCSC from Buy to Hold and suspended its previous price target of $39 a share. KeyBanc Capital Markets commented, "While we think the current valuation limits the downside, we cannot identify a material positive near-term catalyst in the context of what appears to be a weak IT spending environment. Overall, we see limited opportunity for material out-performance given peer and supplier commentary and outlook for IT spending trends. We are still positive on SCSC's long-term growth opportunities based on the Company's solid model, effective execution and secular trends in the industry, but we think the positive impact will be limited at best for the foreseeable future." ScanSource closed at $30.59 on Monday.