Avnet, Inc. (AVT) - Bear of the Day

By Zacks.com,  October 19, 2012, 01:00:01 AM EDT

We are downgrading our recommendation on Avnet, Inc. ( AVT ) from Neutral to Underperform. Earnings estimates for the company have declined significantly, as the weakened economy and currency fluctuation continues to hurt its businesses.

Moreover, the competitive strides in the industry may have a detrimental impact on the company. However, Avnet's diversified product ranges and notable acquisition strategy should have a positive impact on its businesses.

Mounting competition in the industry and negative foreign currency are also likely to be causes of concern moving forward. We have set a target price of $25.00 based on a P/E multiple of 8.9x to our 2013 EPS estimate.

AVNET (AVT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Investing Ideas, Stocks

Referenced Stocks: AVT



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