CDW Price Target Reduced as Morgan Stanley Analyst Turns More Selective on IT Hardware Exposure

CDW Corporation (NASDAQ:CDW) is included among the 13 Top Tech Stocks Paying Consistent Dividends.

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On December 17, Morgan Stanley chopped its terms people connected CDW Corporation (NASDAQ:CDW) to $177 from $191. The steadfast kept its Overweight rating. In its year-ahead presumption connected IT hardware, Morgan Stanley said it prefers companies tied to unreality spending, merchandise refresh cycles similar Apple, and businesses with much differentiated assets. It is steering distant from names with dense representation exposure, including Dell and HP. The expert stated that the steadfast is becoming much cautious regarding memory-linked stocks overall.

CDW Corporation’s (NASDAQ:CDW) third-quarter results demonstrated why the institution continues to basal out. The concern generated $5.7 cardinal successful nett sales, up 4% from past year. Gross nett climbed 5% to $1.3 billion. That benignant of dependable maturation tends to substance much successful a mixed IT spending environment.

Management pointed to strengths crossed respective areas. Government and acquisition customers benefited from CDW’s heavy acquisition successful those markets. Small concern was a agleam spot, delivering double-digit maturation successful some gross and gross profit. Demand for AI workstations among smaller firms picked up during the quarter. The firm conception besides held up well. Revenue roseate astatine a mid-single-digit pace, portion gross nett grew successful the debased azygous digits. Security and unreality projects led the way.

Looking ahead, absorption reaffirmed its 2025 outlook. CDW Corporation (NASDAQ:CDW) expects the US IT marketplace to turn successful the debased azygous digits and believes it tin outperform by 200 to 300 ground points. Gross nett successful the 2nd fractional of the twelvemonth is inactive expected to beryllium somewhat higher than the archetypal half, though the divided should beryllium little balanced than the humanities 48% and 52% pattern. Gross margins successful 2025 are expected to enactment astir successful enactment with 2024.

CDW Corporation (NASDAQ:CDW) is an American multi-brand supplier of IT products and services. It serves customers crossed business, government, education, and healthcare.

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Disclosure: None.