Brean Capital Maintains a Buy Rating on Tech Data Corp.

By George MacDonald

In a report released today, Ananda Baruah from Brean Capital maintained a Buy rating on Tech Data Corp. (NASDAQ: TECD), with a price target of $71. The company’s shares opened today at $63.60.

Baruah observed, “Maintain Buy despite peak-ish valuation at 12x – 13x P/E as European revenue (60% of revs) is turning faster than anticipated. N-T valuation would remain our caveat, while strategically L-T we remain positive, increasing exposure to higher growth and higher margin opportunities and increasingly healthy ROIC (now at 11% vs. WACC of 9%). ‘15 tailwinds could include 1) Windows Server 2003 refresh cycle, 2) growing integrated supply chain services, 3) increasing exposure to data center and Cloud, and 4) tablet product cycles.”

Tech Data Corp. has an analyst consensus of Hold, with a price target consensus of $62.

Tech Data Corp.`s market cap is currently $2.36B and has a P/E ratio of 14.1. The company has a book value ratio of 1.21%.

Unlike Brean Capital`s latest rating, based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. Most recently, in December 2014, Steven Raymund, a Director at TECD sold 44,055 shares for a total of $2,780,125.

According to, Baruah is a 2-star analyst with an average return of 0.7% and a 49.3% success rate. Baruah covers the Technology sector, focusing on stocks such as Electronics for Imaging, Lexmark International, and Hewlett-Packard.

Tech Data Corp is a distributor of information technology (IT) products, logistics management and provides other value-added services.