Ingram Micro Shares Jump After Upgrade
Thursday January 3, 7:03 pm ET
Ingram Micro Shares Jump As Goldman Sachs Upgrades on Valuation, Potential Earnings Growth
NEW YORK (AP) -- Shares of Ingram Micro Inc. jumped Thursday after a Goldman Sachs analyst said the computer products distributor will likely report strong revenue and earnings growth in the latest quarter and this year.
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Min Park upgraded Ingram to "Buy" from "Hold" and added the stock to Goldman's "Americas Buy List." The recent weakness in the stock -- it is down about 10 percent since early November on no major news -- "provides an opportunity for investors to build positions at trough valuation levels," the analyst wrote in a note to clients.
"We continue to expect broad-based fundamental strength across all geographies driving strong revenue and earnings growth in the December quarter and 2008," Park wrote.
Strong fourth-quarter results and a positive outlook for early 2008 "should reverse the recent sell-off and move the shares higher."
While Park thinks Ingram could report better-than-expected results for the quarter on strong demand from Asia and from small and medium businesses. But, the analyst added, "given the negative near-term view and speculation of a softening Europe, which we think is misplaced, even an in-line quarter should provide relief."
