Markets & Finance

Banc of America Lowers Tech Data to Neutral


Tech Data (TECD) cut its second-quarter earnings per share outlook. Banc of America downgraded the stock to neutral from buy.

Analyst Scott Craig says he downgrades despite today's expected weakness in the stock because he thinks last night's disappointing preannouncement may not be the last. He notes that it's a company-specific issue due to execution issues in Europe and disappointing margins there; he says his outlook for Europe had been the reason for his buy rating.

Craig believes the issues there could persist for two to three quarters. He says tangible book value of about $30 does not provide support yet.

Within IT distribution, he says he prefers Synnex (SNX), which he rates buy. His top picks in the overall electronics group are Benchmark Electronics (BHE) and Jabil Circuit (JBL) -- both rated buy.


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus