Bank of America Upgrades Arrow Electronics to Neutral
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy ARW?
Source: seekingalpha
- Rating Upgrade: Bank of America upgraded Arrow Electronics from Underperform to Neutral, reflecting an improving fundamental backdrop with backlog extending into Q2/Q3 and a book-to-bill ratio firmly above 1, indicating a healthier demand environment.
- Price Target Increase: Analyst Ruplu Bhattacharya raised Arrow's price target from $122 to $233, demonstrating increased confidence in the company's future performance, particularly in the context of AI-driven market demand.
- Sales Forecast: Arrow expects Q2 sales between $9.15 billion and $9.75 billion, with non-GAAP EPS projected at $4.32 to $4.52, indicating an optimistic outlook as component recovery accelerates.
- Market Challenges: Despite the positive outlook, analysts remain cautious about potential headwinds from the Asian market, the negative impact of pull-forward demand, and rising component costs, which may pose challenges in the second half of 2026.
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Analyst Views on ARW
Wall Street analysts forecast ARW stock price to fall
2 Analyst Rating
0 Buy
1 Hold
1 Sell
Moderate Sell
Current: 214.240
Low
94.00
Averages
107.00
High
120.00
Current: 214.240
Low
94.00
Averages
107.00
High
120.00
About ARW
Arrow Electronics, Inc. sources and engineers' technology for thousands of manufacturers, service providers, and users of enterprise computing solutions. Its segments include global components and global ECS. It distributes electronic components to original equipment manufacturers and equipment manufacturers providers through its global components segment and provides enterprise computing solutions to value-added resellers and managed service providers through its global ECS reportable segment. The global ECS portfolio includes datacenter, cloud, security, and analytics solutions. Global ECS further supports customers by enabling their software and cloud solutions businesses through ArrowSphere, a software and cloud marketplace and management platform. It maintains over 140 sales facilities and 39 distribution and value-added centers, serving over 85 countries. It has operations in each of the three electronics markets, including the Americas, the EMEA and the Asia/Pacific regions.
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.
Bank of America Upgrades Arrow Electronics to Neutral
- Rating Upgrade: Bank of America upgraded Arrow Electronics from Underperform to Neutral, reflecting an improving fundamental backdrop with backlog extending into Q2/Q3 and a book-to-bill ratio firmly above 1, indicating a healthier demand environment.
- Price Target Increase: Analyst Ruplu Bhattacharya raised Arrow's price target from $122 to $233, demonstrating increased confidence in the company's future performance, particularly in the context of AI-driven market demand.
- Sales Forecast: Arrow expects Q2 sales between $9.15 billion and $9.75 billion, with non-GAAP EPS projected at $4.32 to $4.52, indicating an optimistic outlook as component recovery accelerates.
- Market Challenges: Despite the positive outlook, analysts remain cautious about potential headwinds from the Asian market, the negative impact of pull-forward demand, and rising component costs, which may pose challenges in the second half of 2026.
See More
Arrow Electronics Reports Strong Q1 2026 Earnings
- Sales Performance Surge: Arrow Electronics reported first-quarter sales of $9.5 billion, a 39% year-over-year increase ($2.7 billion), exceeding expectations and demonstrating strong market performance and sustained customer demand.
- Profitability Enhancement: The non-GAAP EPS reached $5.22, reflecting a substantial 190% year-over-year increase, indicating significant progress in cost control and operational efficiency, which boosts investor confidence.
- Optimistic Market Outlook: Management expects second-quarter sales to range between $9.15 billion and $9.75 billion, with non-GAAP EPS projected between $4.32 and $4.52, reflecting confidence in future growth and sustained strong market demand.
- Supply Chain Services Contribution: Value-added services significantly contributed to overall operating income, accounting for about 30% last year, indicating that strategic investments in supply chain management are yielding positive results and further solidifying the company's market position.
See More
Arrow Electronics Set to Announce Q1 Earnings on May 7
- Earnings Announcement: Arrow Electronics is set to release its Q1 2023 earnings report on May 7, with consensus EPS estimated at $2.85, reflecting a 58.3% year-over-year increase, and revenue expected at $8.33 billion, up 22.3%, indicating strong growth momentum.
- Historical Performance: Over the past two years, Arrow has consistently beaten EPS and revenue estimates 100% of the time, showcasing its financial stability and bolstering investor confidence in the company's future performance.
- Upward Revision Trend: In the last three months, Arrow's EPS and revenue estimates have seen four upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on the company's growth, which could drive stock price appreciation.
- Positive Market Response: With the upcoming earnings report, Arrow Electronics is performing strongly among mid-cap tech stocks, highlighting its competitive edge and investment appeal, potentially attracting more investor interest.
See More
Arrow Electronics Launches Cloud-Based Remote Engineering Service
- Digital Test Drive Launch: Arrow Electronics has introduced Digital Test Drive, a cloud-based remote engineering service designed to help technology developers evaluate hardware faster, reduce costs, and improve productivity, which is expected to significantly enhance customer development efficiency.
- Real-Time Remote Control: Users can instantly connect to a pre-set virtual machine via a secure web link, directly accessing physical development boards in Arrow's engineering labs, allowing real-time control of evaluation kits and viewing test results, thereby accelerating decision-making.
- Streamlined Testing Process: The service eliminates common barriers such as kit availability, shipping delays, and complex setups, helping businesses shorten development cycles and enhance product time-to-market, thereby improving competitive positioning.
- Technical Support and Training: Arrow's technical experts provide online workshops, training, and product demonstrations, ensuring users can fully leverage the capabilities of Digital Test Drive, thus enhancing overall user experience and satisfaction.
See More
Arrow Electronics Unifies Customer Digital Platforms
- Platform Integration Upgrade: Arrow Electronics has completed the integration of its global components business customer digital platforms, launching the redesigned arrow.com to provide a unified procurement and engineering experience for existing customers while attracting traditional offline customers to online engagement.
- Comprehensive Functionality: The new platform consolidates product selection, purchasing, services, and account management, replacing the former MyArrow portal, thereby simplifying the search, evaluation, and transaction processes for customers on Arrow's website and enhancing user experience.
- Enhanced Technical Support: The updated arrow.com not only offers a more convenient transaction method but also directly integrates the company's technical design engineering, integration, and supply chain services, ensuring comprehensive support for customers during their usage.
- Future Development Plans: Arrow Electronics plans to introduce new capabilities, user personalization settings, and deeper customer engagement functionalities in the coming months, further enhancing customer satisfaction and driving efficient operations in its global distribution business.
See More
An Unexpected Method to Benefit from Earnings Surprises
- Focus Shift: The financial media has recently concentrated on the war in Iran, overshadowing other significant economic statistics.
- Investor Implications: An important statistic from S&P Capital IQ suggests that investors may need to adjust their reactions to earnings reports based on this overlooked data.
See More
Bank of America Upgrades Arrow Electronics to Neutral
- Rating Upgrade: Bank of America upgraded Arrow Electronics from Underperform to Neutral, reflecting an improving fundamental backdrop with backlog extending into Q2/Q3 and a book-to-bill ratio firmly above 1, indicating a healthier demand environment.
- Price Target Increase: Analyst Ruplu Bhattacharya raised Arrow's price target from $122 to $233, demonstrating increased confidence in the company's future performance, particularly in the context of AI-driven market demand.
- Sales Forecast: Arrow expects Q2 sales between $9.15 billion and $9.75 billion, with non-GAAP EPS projected at $4.32 to $4.52, indicating an optimistic outlook as component recovery accelerates.
- Market Challenges: Despite the positive outlook, analysts remain cautious about potential headwinds from the Asian market, the negative impact of pull-forward demand, and rising component costs, which may pose challenges in the second half of 2026.
See More
Arrow Electronics Reports Strong Q1 2026 Earnings
- Sales Performance Surge: Arrow Electronics reported first-quarter sales of $9.5 billion, a 39% year-over-year increase ($2.7 billion), exceeding expectations and demonstrating strong market performance and sustained customer demand.
- Profitability Enhancement: The non-GAAP EPS reached $5.22, reflecting a substantial 190% year-over-year increase, indicating significant progress in cost control and operational efficiency, which boosts investor confidence.
- Optimistic Market Outlook: Management expects second-quarter sales to range between $9.15 billion and $9.75 billion, with non-GAAP EPS projected between $4.32 and $4.52, reflecting confidence in future growth and sustained strong market demand.
- Supply Chain Services Contribution: Value-added services significantly contributed to overall operating income, accounting for about 30% last year, indicating that strategic investments in supply chain management are yielding positive results and further solidifying the company's market position.
See More
Arrow Electronics Set to Announce Q1 Earnings on May 7
- Earnings Announcement: Arrow Electronics is set to release its Q1 2023 earnings report on May 7, with consensus EPS estimated at $2.85, reflecting a 58.3% year-over-year increase, and revenue expected at $8.33 billion, up 22.3%, indicating strong growth momentum.
- Historical Performance: Over the past two years, Arrow has consistently beaten EPS and revenue estimates 100% of the time, showcasing its financial stability and bolstering investor confidence in the company's future performance.
- Upward Revision Trend: In the last three months, Arrow's EPS and revenue estimates have seen four upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on the company's growth, which could drive stock price appreciation.
- Positive Market Response: With the upcoming earnings report, Arrow Electronics is performing strongly among mid-cap tech stocks, highlighting its competitive edge and investment appeal, potentially attracting more investor interest.
See More
Arrow Electronics Launches Cloud-Based Remote Engineering Service
- Digital Test Drive Launch: Arrow Electronics has introduced Digital Test Drive, a cloud-based remote engineering service designed to help technology developers evaluate hardware faster, reduce costs, and improve productivity, which is expected to significantly enhance customer development efficiency.
- Real-Time Remote Control: Users can instantly connect to a pre-set virtual machine via a secure web link, directly accessing physical development boards in Arrow's engineering labs, allowing real-time control of evaluation kits and viewing test results, thereby accelerating decision-making.
- Streamlined Testing Process: The service eliminates common barriers such as kit availability, shipping delays, and complex setups, helping businesses shorten development cycles and enhance product time-to-market, thereby improving competitive positioning.
- Technical Support and Training: Arrow's technical experts provide online workshops, training, and product demonstrations, ensuring users can fully leverage the capabilities of Digital Test Drive, thus enhancing overall user experience and satisfaction.
See More
Arrow Electronics Unifies Customer Digital Platforms
- Platform Integration Upgrade: Arrow Electronics has completed the integration of its global components business customer digital platforms, launching the redesigned arrow.com to provide a unified procurement and engineering experience for existing customers while attracting traditional offline customers to online engagement.
- Comprehensive Functionality: The new platform consolidates product selection, purchasing, services, and account management, replacing the former MyArrow portal, thereby simplifying the search, evaluation, and transaction processes for customers on Arrow's website and enhancing user experience.
- Enhanced Technical Support: The updated arrow.com not only offers a more convenient transaction method but also directly integrates the company's technical design engineering, integration, and supply chain services, ensuring comprehensive support for customers during their usage.
- Future Development Plans: Arrow Electronics plans to introduce new capabilities, user personalization settings, and deeper customer engagement functionalities in the coming months, further enhancing customer satisfaction and driving efficient operations in its global distribution business.
See More
An Unexpected Method to Benefit from Earnings Surprises
- Focus Shift: The financial media has recently concentrated on the war in Iran, overshadowing other significant economic statistics.
- Investor Implications: An important statistic from S&P Capital IQ suggests that investors may need to adjust their reactions to earnings reports based on this overlooked data.
See More
