CDW Corp Receives a Buy from J.P. Morgan

By Carrie Williams

J.P. Morgan analyst Tien Tsin Huang reiterated a Buy rating on CDW Corp (NASDAQ: CDW) today and set a price target of $50. The company’s shares opened today at $44.10.

Tsin Huang commented:

“CDW was able to deliver its 12th consecutive EPS beat despite tough macro. EPS upside was primarily driven by higher gross margins, SG&A leverage and fewer shares. Consistent with last quarter, results were tempered by a decline in Corporate Segment (choppy macro environment), counter-balanced by strength in public sector and margin execution. CDW continues to believe it will outpace U.S. IT spending by 200-300bps on an organic constant currency basis, but now sees U.S. IT spend below the low end of its prior 2% – 3% range.”

According to, Huang is a 4-star analyst with an average return of 2.7% and a 57.3% success rate. Huang covers the Technology sector, focusing on stocks such as Broadridge Financial Solutions Llc, Black Knight Financial Services, and Automatic Data Processing.

CDW Corp has an analyst consensus of Moderate Buy, with a price target consensus of $49.

Based on CDW Corp’s latest earnings report from June 30, the company posted quarterly revenue of $3.66B and quarterly net profit of $117.5M. In comparison, last year the company earned revenue of $3.5B and had a net profit of $150.9M.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is neutral on the stock. Most recently, in March 2016, FAIRFIELD NEIL B, the VICE PRESIDENT & CONTROLLER of CDW sold 2,791 shares for a total of $112,862.

CDW Corp. engages in the provision of integrated information technology solutions. Its offerings ranges from discrete hardware and software products to integrated IT solutions such as mobility, security, data center optimization, cloud computing, virtualization, and collaboration. It operates through the Corporate and Public segments. The Corporate segment comprises primarily of private sector business customers. The Public segment involves government agencies, education, and healthcare institutions. The company was founded in 1984 by Michael P. Krasny and is headquartered in Vernon Hills, IL.