UPDATE: Canaccord Genuity Initiates Coverage on PC Connection with Buy Rating, $18 PT on Good Market Position

In a report published Tuesday, Canaccord Genuity analyst Bobby Burleson initiated coverage on PC Connection PCCC with a Buy rating and $18.00 price target. In the report, Canaccord Genuity noted, “We are initiating coverage of PCCC with a BUY rating based on our view that the company is well positioned to expand operating margins by increasing its mix of higher-value products and services. We expect operating margin to expand to at least 3% over the next 12-15 months with upside possible through an acceleration of this timetable by acquisition. We note the company has a strong cash position and a solid M&A track record, and we expect acquisitions in high-value segments of the IT supply chain (storage, cloud-centric, etc.) to act as positive catalysts for the stock.” PC Connection closed on Monday at $15.09.