Crispr Therapeutics shares tumble after significant earnings miss
Investing.com - Citi raised its price target on CDW Corporation (NASDAQ:CDW) to $200.00 from $180.00 while maintaining a Neutral rating on the stock. The technology solutions provider, with a market capitalization of $23.4 billion and annual revenue of $21.3 billion, has maintained dividend payments for 13 consecutive years, according to InvestingPro data.
The price target increase reflects positive read-through from TD Synnex’s upside results, as well as solid execution by CDW and expected budget flush improvements in commercial PC refresh, endpoint, and campus networking refresh broadly. While the company’s gross profit margins remain relatively modest at 21.9%, InvestingPro analysis shows CDW has consistently delivered strong returns over the past decade.
Citi noted it remains positive on CDW’s positioning, particularly in advanced solutions including AI/data analytics, advanced networking, cloud solutions, and cybersecurity.
Despite these positive factors, Citi maintained its Neutral stance, citing concerns about the uncertain macro environment in the second half of the calendar year, which remains choppy, and potential geopolitical impacts on enterprise spending that could temper recovery pace.
The new price target is based on a higher price-to-earnings multiple of 18x, up from the previous 17x, applied to fiscal 2024 earnings per share estimates, though still below the three-year median P/E of 19x. Currently trading at a P/E ratio of 21.8x, InvestingPro analysis suggests the stock is trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report.
In other recent news, CDW Corporation reported strong first-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $2.15, exceeding the forecasted $1.96, and reported revenue of $5.2 billion, higher than the anticipated $4.93 billion. This performance reflects an 8% year-over-year revenue growth, driven by robust client device and software sales. In a strategic move, CDW has partnered with Asato Corporation to integrate AI-powered IT asset intelligence solutions into its offerings, enhancing its business observability platform for enterprise customers. However, CDW is facing scrutiny from the General Services Administration (GSA) as part of a government initiative to reduce federal contract spending. William Blair analyst Maggie Nola highlighted potential risks to CDW’s government segment revenue, noting that government contracts accounted for 10.3% of CDW’s total revenue in the first quarter of 2025. Despite these challenges, CDW maintains a positive outlook for 2025, expecting continued growth in cloud and AI capabilities. The company remains cautious about federal and education market dynamics but does not foresee recessionary conditions impacting its operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.