Ingram Micro (INGM) is "well positioned" to benefit from an increase in global information technology spending and the PC refresh cycle over the near term, RBC Capital Markets said in a note Wednesday.
The expected increase in IT investment, driven by the adoption of artificial intelligence-enabled devices with higher average selling prices, is likely to fuel growth. Additionally, the company stands to benefit from a near-term resurgence in PC upgrades, which had been delayed for over a year amid recession concerns, according to the note.
The firm said it expects the company's Q2 results to hit the upper end of guidance, with adjusted EPS of $0.60 and revenue anticipated to grow 5% year-over-year to $12.12 billion.
The firm lowered its Q3 estimates to reflect the impact of a July 3 ransomware attack that affected online ordering systems.
Despite the temporary setback and ongoing tariff-related headwinds, analysts remain optimistic, highlighting Ingram's investment in automation and AI-driven sales platforms, which have helped remove over $200 million in annualized costs. The company's cloud business, while small in revenue share, continues to deliver strong gross profit contributions, the note said.
RBC has an outperform rating on Ingram, with a price target of $25.
Price: 21.36, Change: +0.50, Percent Change: +2.40
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