Ingram Micro was gaining 2% to $24.74 in morning trading.
The firm set a price target of $31 for the company.
Analyst Ananda Baruah said demand is stabilizing, and the company is restoring profitability in some key regions such as Europe and Australia.
"Additionally, we believe management's broader strategy of improving product mix by expanding into higher-margin offerings should bode well for sustainable EPS growth, and concurrently, valuation multiples," Baruah wrote.
"We are raising our '14 Revenue and EPS to $43.8B and $2.60, from our prior estimate of $43.3B and $2.38, respectively. Additionally, we are introducing '15 Revenue and EPS of $46B and $3.10. Our $31 TP is 10x our '15 EPS of $3.10 and is also 1.2x the ~$25 in Tangible Book Value we believe IM attains in '15."
Separately, TheStreet Ratings team rates INGRAM MICRO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate INGRAM MICRO INC (IM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."