) hit a new 52-week high of $30.82 on Apr 9, eventually closing
at $30.56. The closing share price also represents an
extraordinary one-year return of 58.18% and a year-to-date return
Some of the current optimism surrounding the shares is related
to the introduction of Ingram Micro's Cloud Marketplace globally.
First launched in North America, the Cloud Marketplace generated
a huge response which prompted the company to launch it on a
Ingram Micro has been striking distribution deals with a
number of original equipment manufacturers thus expanding its
product portfolio. Recently, it forged deals with
) among other vendors. Moreover, Ingram Micro's exposure in cloud
computing products is expected to remain its key growth
The Ingram Micro Cloud Marketplace comprises of more than 200
cloud-based solutions from over 70 vendors, which include
bellwethers such as
) and AVG Technologies. The company has added several cloud
service providers such as Charter, Logix and Softlayer to expand
its cloud-based offerings.
Ingram Micro's initiative comes at an opportune moment as cost
benefits of cloud computing are compelling the companies to
engage in massive information technology restructuring and
According to the latest study by IHS Inc., spending on
cloud-based services should surge almost three times and reach
$235 billion in 2017 from $78.2 billion in 2011. We expect this
to work in favor of distributors like Ingram.
Separately, Ingram Micro has been gaining from increased
orders from small & medium business (SMB) organizations in
Europe, particularly in Germany and the U.K. Ingram is now
targeting the SMB segment in a more comprehensive way, not just
in Europe but across all regions. However, the company's
significant exposure to Europe and its high debt burden are
concerns, going forward.
Currently, Ingram Micro has a Zacks Rank #2 (Buy).
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