Story updated at 9:50 a.m. to reflect market activity.
Shares of Ingram Micro gained 3.1% to $30.64 in morning trading.
The firm set a price target of $35 for the company. Ingram Micro is cutting costs, and could exceed consensus earnings expectations according to Citigroup analysts.
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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, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- IM's revenue growth has slightly outpaced the industry average of 2.0%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 56.36% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has significantly increased by 337.31% to $352.64 million when compared to the same quarter last year. In addition, INGRAM MICRO INC has also vastly surpassed the industry average cash flow growth rate of -8.41%.
- INGRAM MICRO INC has improved earnings per share by 7.6% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, INGRAM MICRO INC reported lower earnings of $1.98 versus $1.99 in the prior year. This year, the market expects an improvement in earnings ($2.61 versus $1.98).
- You can view the full analysis from the report here: IM Ratings Report