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Research Alert: Cdw Maintains Buy Rating On Shares Of Cdw Corporation.

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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 lower our target price from $170 to $137 on a forward P/E of 12x our 2027 EPS projection of $11.44, below the company's three-year average multiple. We increase our 2026 EPS forecast from $10.66 to $10.69 and our 2027 EPS view from $11.32 to $11.44. CDW reported strong Q1 2026 results, with net sales of $5.68B up 9.2% Y/Y (8.4% constant currency), exceeding expectations. Top-line performance was due to Commercial strength (+9.6%) from outsized expansion in Financial Services (+28.2%) and Corporate (+8.4%). However gross margin compressed 60 bps to 21.0%. While macroeconomic risks are elevated in the short term, management maintained full-year guidance for 200-300 bps market outperformance and non-GAAP EPS growth at the high end of mid-single digits. We also see other positives and potential offsets, including its diversified portfolio, backlog and cost efficiency initiatives. Current valuation levels also makes the risk-reward compelling, in our view. Therefore, we maintain a Buy rating on CDW.

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