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On Wednesday, Barclays (LON:BARC) analysts adjusted their outlook on CDW Corporation (NASDAQ:CDW), increasing the price target to $223.00 from the previous $201.00. The firm maintained an Equalweight rating on the stock. According to InvestingPro analysis, CDW’s current market capitalization stands at $27.63 billion, with the stock trading at a P/E ratio of 25.25, suggesting a relatively high valuation compared to its near-term earnings growth potential.
CDW Corporation recently reported a strong fourth quarter, surpassing revenue and earnings per share (EPS) expectations. With annual revenue reaching $20.83 billion, this performance was attributed to robust sales in the corporate, small and medium-sized business (SMB), and healthcare sectors. These gains helped to counterbalance weaker results in government, education, and international markets. InvestingPro subscribers can access 12 additional key insights about CDW’s performance and future prospects.
Barclays analysts highlighted that while the initial calendar year 2025 guidance indicates lower-than-expected low single-digit EPS growth, there are positive developments in Netcomm and Storage. However, they also noted a continued cautious stance on the Server segment.
The new price target reflects Barclays’ recognition of CDW’s solid fourth-quarter performance and the potential for growth in specific technology sectors. Despite the mixed guidance for the coming years, the firm’s analysts see enough positive factors to warrant a higher price target.
CDW Corporation has yet to comment on the updated price target or the analyst’s remarks regarding their financial performance and future outlook. The market’s response to this new price target and CDW’s recent financial results will be observed in the coming trading sessions.
In other recent news, CDW Corporation reported fourth-quarter earnings and revenue that surpassed Wall Street expectations. The company announced a Q4 EPS of $2.48, higher than analyst estimates of $2.33, and revenue reaching $5.19 billion against a consensus estimate of $4.96 billion. Despite economic uncertainty, CDW’s fourth-quarter net sales saw a 3.3% increase compared to the same period in the previous year, attributed to improvements in customer spending across all operating segments. However, the company’s full-year figures showed a slight decline of 1.8% compared to 2023.
CDW’s board approved a $750 million increase to its share repurchase authorization and announced a quarterly cash dividend of $0.625 per share, a modest 1% hike from the prior year. Despite these positive developments, a JPMorgan analyst expressed concerns about modest growth outlook for gross profit and earnings in 2025, suggesting it may fall short of expectations for a recovery year. These are recent developments that provide a mixed perspective on CDW’s performance, balancing its fourth-quarter success against cautious anticipation of its performance in the coming year.
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