AVT Should I Buy
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Avnet Inc (AVT) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company shows signs of cyclical recovery and has a bullish technical setup, the lack of strong positive catalysts, declining financial performance, and mixed analyst sentiment suggest holding off on a purchase until there is greater clarity on demand trends and financial stabilization.
The stock has a bullish technical setup with MACD above 0 and positively contracting, RSI in a neutral zone, and moving averages showing a bullish trend (SMA_5 > SMA_20 > SMA_200). Key support is at 64.321, and resistance is at 66.988.
The company is showing signs of cyclical recovery, with improving demand trends and book-to-bill ratios. Analysts note stabilization in demand and recovery in Asia.
Revenue growth is overshadowed by declining net income (-29.25% YoY) and EPS (-24.24% YoY). Gross margin has also slightly declined. Analysts remain cautious, with multiple firms maintaining underperform or hold ratings. No recent news or significant insider/hedge fund activity to support a strong buy case.
In Q2 2026, revenue increased by 11.58% YoY to $6.32 billion, but net income dropped by 29.25% YoY to $61.73 million. EPS also declined by 24.24% YoY to $0.75, and gross margin slightly dropped to 10.49%.
Analyst sentiment is mixed. Truist raised the price target to $65 and maintains a Hold rating, citing cyclical recovery. BofA raised the price target to $55 but maintains an Underperform rating, awaiting more confirmation on demand trends. Wells Fargo raised the price target to $48 but keeps an Underweight rating, noting recovery led by Asia but awaiting stronger demand from western regions.
