ARW - Notes from the road: Cyclical and structural improvements in place. Reiterate Buy; PT to $260.

研报英文原文证据摘录

ARW - Notes from the road: Cyclical and structural improvements in place. Reiterate Buy; PT to $260.

Truist Securities

Equity Research Report June 4, 2026

TMT: Technology Distributors Arrow Electronics, Inc. (ARW)

ARW - Notes from the road: Cyclical and structural improvements in William Stein, CFA

212-319-3808 place. Reiterate Buy; PT to $260.

William.Stein@truist.com

Elliott Smith, CFA Constructive messaging all around. We recently hosted investor meetings with ARW's

212-303-4150 management team. The key takeaways were (1) management reinforced its message

Elliott.Smith@truist.com that components distribution is in a cyclical upturn, (2) we see value added services as

particularly constructive for ROIC, OPM, and EPS growth, still likely under-appreciated

Aidan Wilson by investors; (3) While these two factors alone should drive earnings power upside,

212-319-3429 management also highlights fixed cost leverage that should also help. We take our CY27

Aidan.Wilson@truist.com EPS estimate to $21.73 (from $21.65) and PT to $260 (from $240) based on 12x (9.5x

discount to the S&P).

Stock Rating BUY We recently hosted a day in meetings with investors and ARW's management team,

Unchanged including Bill Austen (Interim CEO), Raj Agrawal (CFO), and Michael Nelson (Head of IR).

Key takeaways follow:

Price Target $260.00

↑ Cyclical dynamics are still in the early stages of improvement, and continuing... ARW

from reiterated similar trends that we outlined in our upgrade and on ARW's most recent earnings

$240.00 call: demand is showing clear improvement in broad end markets, especially US industrial,

but now also in European automotive. Prices are rising (yes in memory, but also in other

areas modestly), leadtimes are stretching (again, modestly), book/bills are above parity in