Hardware & Networking Upgrade Medium-Term Outlook for IT Distis/VARs Led by Demand Sustainability; Raise CDW & SNX to OW and INGM & NSIT to Neutral

研报英文原文证据摘录

Hardware & Networking Upgrade Medium-Term Outlook for IT Distis/VARs Led by Demand Sustainability; Raise CDW & SNX to OW and INGM & NSIT to Neutral

business embedded within a traditional

distribution business warranting a premium for SNX shares. We attribute a premium 22x

multiple to Hyve as well as a historical multiple for the remainder of the company to imply

a re-rating opportunity to mid-teens P/E (relative to low-teens currently), which

alongside robust demand drivers presents sizeable upsides to current share prices. We are

upgrading SNX shares to Overweight with a sizeable upside opportunity on the shares

and increase our Dec-26 price target to $298.

• INGM: Upgrade to Neutral on limited downside to consensus as demand

momentum likely to continue through the year. We are updating our revenue and

earnings forecasts for INGM to factor in continued demand momentum from Enterprise

customers, along with continued demand for GPU distribution. Additionally, with

leverage of Xvantage enabling operating leverage to allow for flow-through of revenue

upsides to earnings, we now expect limited downside to consensus earnings expectations

for the company, and upgrade to Neutral (from Underweight prior). We are raising our

December 2026 price target to $27 based on applying an 8x multiple to our FY27 EPS

estimate of $3.75, largely in line with the current trading multiple for the shares.

• NSIT: Upgrade to Neutral on continued Enterprise demand momentum and return

of Cloud growth providing visibility to mid-single digit GP growth or better. We are

upgrading shares of NSIT to Neutral (vs. Underweight prior), as accelerating Cloud gross

profit growth and an elevated Hardware backlog collectively present a compelling

opportunity for investors at the stock’s current valuation.