
Avnet (AVT) Stock Forecast & Price Target
Avnet (AVT) Analyst Ratings
Bulls say
Avnet Inc has demonstrated resilience in several key markets, including aerospace/defense and datacenter sectors, while a recovery in Asia is anticipated to further enhance growth in coming quarters. The company reported Q2 results that exceeded consensus expectations, bolstered by robust component sales and effective cost management, evidenced by stable lead times and improving book-to-bill ratios. Additionally, Avnet's cash management cycle has shown improvement, indicating effective operational efficiency, while sales and margins remain elevated above previous cyclical lows.
Bears say
Avnet has issued guidance indicating a significant decline in its components segment operating margin, projecting it to drop below 4%, alongside a gross margin decrease of 28 basis points quarter-over-quarter and 92 basis points year-over-year, culminating in a gross margin of 11.6%. Additionally, the company anticipates a 15% year-over-year decline in sales driven by persistent weakness in the EMEA region, with inventory levels showing a sequential reduction of 4.9%. Lastly, with a decline in both book value and tangible book value per share compared to the previous quarter, combined with expectations of lower gross margins and negative leverage in selling, general, and administrative expenses, Avnet faces several headwinds affecting its overall financial health.
This aggregate rating is based on analysts' research of Avnet and is not a guaranteed prediction by Public.com or investment advice.
Avnet (AVT) Analyst Forecast & Price Prediction
Start investing in Avnet (AVT)
Order type
Buy in
Order amount
Est. shares
0 shares