Morgan Stanley Downgrades CDW Amid Declining Hardware Budgets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 20 Jan 26
CDW Corp's stock fell sharply, hitting a 52-week low as the company faces significant revenue risks.
Morgan Stanley downgraded CDW's rating to Equal-weight and cut its price target from $177 to $141, citing that over 40% of CDW's revenue is derived from PC, server, and storage sales. The firm noted that enterprises expect only 1% growth in hardware budgets for 2026, reflecting a cautious macroeconomic outlook that could adversely impact CDW's performance.
This downgrade highlights the challenges CDW may face in the coming quarters as reduced hardware budgets could lead to revenue declines, emphasizing the need for the company to adapt to changing market conditions.
Analyst Views on CDW
Wall Street analysts forecast CDW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CDW is 177.14 USD with a low forecast of 148.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
5 Buy
3 Hold
0 Sell
Moderate Buy
Current: 125.200
Low
148.00
Averages
177.14
High
200.00
Current: 125.200
Low
148.00
Averages
177.14
High
200.00
About CDW
CDW Corporation is a multi-brand provider of information technology (IT) solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada. The Company’s array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premises and cloud capabilities across hybrid infrastructure, digital experience and security. The Company operates through three segments: Corporate, Small Business and Public. The Corporate segment primarily serves United States private sector business customers. The Small Business segment primarily serves United States private sector business customers. The Public segment comprises government agencies and education and healthcare institutions in the United States. The Company’s solutions are delivered in physical, virtual and cloud-based environments. The Company provides integrated IT solutions in more than 150 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
