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Research Alert: CFRA Raises Opinion On Shares Of Arrow Electronics Inc. To Hold From Sell

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target to $210 from $132, implying a 2027 P/E of 11.0x, a justified premium to the stock's five-year average forward P/E multiple of 9.0x. We increase our adjusted EPS estimates to $17.55 from $13.48 for 2026 and to $19.10 from $14.64 for 2027. ARW posted Q1 adjusted EPS of $5.22 vs. $1.80 (+190%), well ahead of the $2.85 consensus. ARW's sales increased 39% Y/Y to $9.47B ($1.17B ahead of consensus) and operating margin expanded 150 bps to 3.8%. ARW's Q2 revenue and adjusted EPS guidance of $9.15B-$9.75B and $4.32-$4.52, respectively, was well ahead of the consensus forecasts of $8.84B and $3.64, respectively. While valuation and slowing growth remain concerns, the magnitude of upward estimates revisions and the company's overall positive momentum make it difficult to continue to justify a Sell rating. Both segments are firing on all cylinders after posting 39% revenue growth in Q1 with Global Components at ~70% of total revenue and Enterprise Computing Solutions at ~30%.

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