) to buy from neutral.
Analyst Joel Wagonfeld says he's upgrading on evidence that potential operating leverage in the company's model is greater, and can be achieved sooner, than he had expected. He says Ingram's comments suggest end demand is improving, and that industry dynamics may have stabilized, or even started to improve. He notes the company is seeing continued improvement in corporate information-technology spending, from which it should benefit.
Wagonfeld says the 34 cents fourth-quarter non-GAAP earnings per share surpassed his in-line estimate of 23 cents, and his revenue estimate of $6.8 billion beat estimates by $1 billion. Wagonfeld upped the 89 cents 2004 earnings per share estimate to $1.03, and upped the $23 billion revenue estimate to $25 billion. He has a $19 target.