Bullish indicating open at $55-$60, IPO prices at $37
On Friday, Truist Securities maintained a Hold rating on Arrow Electronics (NYSE:ARW) with a steady price target of $118.00. The firm’s analyst, William Stein, reiterated the rating following recent investor meetings with the management team of Arrow Electronics. During these meetings, the company’s management emphasized the early stages of a cyclical upturn that they anticipate will boost revenue, margins, and inventory metrics in the near term. With a market capitalization of $6.1 billion and P/E ratio of 16.17x, Arrow Electronics has been actively managing capital return, as InvestingPro data shows management has been aggressively buying back shares.
Stein highlighted that Arrow Electronics does not foresee a significant impact from tariffs, which have been a concern for many companies in international trade. Additionally, the analyst pointed out the potential opportunities and risks associated with China-based suppliers, which are yet to be fully explored by the company. According to InvestingPro analysis, the company’s strong free cash flow yield and current valuation metrics suggest potential upside, with 6 additional ProTips available for subscribers.
The management of Arrow Electronics also indicated plans to set new financial targets in the coming quarters. However, despite these forward-looking statements and the potential for growth, Truist Securities has not altered its estimates, price target, or the Hold rating for Arrow Electronics stock.
The reiteration of the Hold rating suggests that Truist Securities advises investors to maintain their current position in Arrow Electronics shares without increasing or decreasing their stake at this time. This guidance comes even as the company communicates a positive outlook on its growth prospects and strategic initiatives.
In other recent news, Arrow Electronics reported its first-quarter 2025 financial results, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.80, exceeding the forecasted $1.44, and reported revenues of $6.81 billion, above the anticipated $6.36 billion. Arrow Electronics’ Enterprise Computing Solutions segment experienced notable growth, with sales increasing by 18% year-over-year. Despite a slight decline in the Global Components segment, the company maintained positive cash flow for the seventh consecutive quarter. Arrow Electronics provided guidance for the second quarter of 2025, projecting sales between $6.7 billion and $7.3 billion and non-GAAP EPS ranging from $1.90 to $2.10. The company expressed optimism about its prospects in the Asia region and among OEM customers. Analysts from Wells Fargo (NYSE:WFC) and Truist Securities participated in the earnings call, with discussions focusing on inventory levels and the impact of tariffs. Arrow Electronics remains focused on managing supply chain challenges and adapting to evolving trade policies.
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