Citigroup Has Lowered Expectations for CDW (NASDAQ:CDW) Stock Price

Key Points

• Citigroup cut its price target on CDW from $150 to $123 while keeping a neutral rating, signaling reduced expectations for the stock. The new target still implies some upside from the previous close, but less than before.
• Several other analysts also lowered targets on CDW recently, including JPMorgan and Barclays, though the overall consensus remains “Moderate Buy” with an average price target of $142.14.
• CDW’s latest earnings were solid but the stock sold off: Q1 EPS matched estimates at $2.28 and revenue beat expectations at $5.68 billion, yet shares fell sharply after the report and traded near their 52-week low.

CDW (NASDAQ:CDW - Get Free Report) had its target price cut by stock analysts at Citigroup from $150.00 to $123.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "neutral" rating on the information technology services provider's stock. Citigroup's target price suggests a potential upside of 17.47% from the stock's previous close.

A number of other research firms have also recently commented on CDW. UBS Group cut their target price on shares of CDW from $162.00 to $147.00 and set a "buy" rating for the company in a research note on Thursday. Weiss Ratings reissued a "hold (c-)" rating on shares of CDW in a research note on Friday, April 24th. JPMorgan Chase & Co. cut their target price on shares of CDW from $160.00 to $130.00 and set a "neutral" rating for the company in a research note on Thursday. Morgan Stanley upped their price objective on shares of CDW from $141.00 to $142.00 and gave the company an "equal weight" rating in a research note on Thursday, February 5th. Finally, Barclays cut their price objective on shares of CDW from $144.00 to $123.00 and set an "equal weight" rating for the company in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $142.14.

CDW Price Performance

Shares of CDW stock traded down $5.49 on Friday, reaching $104.71. 1,711,633 shares of the company were exchanged, compared to its average volume of 1,745,420. The company has a market cap of $13.40 billion, a price-to-earnings ratio of 12.74, a P/E/G ratio of 1.50 and a beta of 1.04. The business has a 50-day moving average price of $125.02 and a 200 day moving average price of $134.26. The company has a debt-to-equity ratio of 1.81, a quick ratio of 1.10 and a current ratio of 1.16. CDW has a 1 year low of $104.41 and a 1 year high of $192.30.

CDW (NASDAQ:CDW - Get Free Report) last released its earnings results on Wednesday, May 6th. The information technology services provider reported $2.28 EPS for the quarter, hitting analysts' consensus estimates of $2.28. The business had revenue of $5.68 billion during the quarter, compared to analysts' expectations of $5.48 billion. CDW had a net margin of 4.70% and a return on equity of 49.67%. The company's quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.15 earnings per share. Equities research analysts forecast that CDW will post 10.01 earnings per share for the current fiscal year.

Institutional Trading of CDW

A number of hedge funds have recently bought and sold shares of CDW. Marshall Wace LLP raised its holdings in CDW by 255.7% in the 3rd quarter. Marshall Wace LLP now owns 599,248 shares of the information technology services provider's stock valued at $95,448,000 after acquiring an additional 430,796 shares during the last quarter. Border to Coast Pensions Partnership Ltd purchased a new stake in shares of CDW in the 3rd quarter valued at approximately $29,649,000. SG Americas Securities LLC grew its stake in shares of CDW by 531.9% in the 4th quarter. SG Americas Securities LLC now owns 189,285 shares of the information technology services provider's stock valued at $25,781,000 after buying an additional 159,332 shares during the period. Life Cycle Investment Partners Ltd purchased a new stake in shares of CDW in the 4th quarter valued at approximately $18,948,000. Finally, PFA Pension Forsikringsaktieselskab purchased a new stake in shares of CDW in the 4th quarter valued at approximately $16,274,000. Institutional investors and hedge funds own 93.15% of the company's stock.

Key Headlines Impacting CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: CDW reported Q1 EPS of $2.28, matching estimates, while revenue of $5.68 billion topped expectations and rose 9.2% year over year; management also highlighted its “Geared for Growth” and AI-first initiatives, which could support margin improvement and up to $200 million in cost savings. Article Title
• Positive Sentiment: JPMorgan still sees upside from current levels despite lowering its target to $130, and several other recent price targets remain above the stock price, suggesting analysts have not turned outright bearish. Article Title
• Neutral Sentiment: Technical commentary says CDW is in oversold territory, which could support a bounce if selling pressure fades, but this is more of a trading signal than a fundamental catalyst. Article Title
• Negative Sentiment: Despite the revenue beat, the market punished the stock sharply after earnings, indicating investors were disappointed by the broader outlook or not convinced the growth story is enough to re-rate the shares. Article Title
• Negative Sentiment: JPMorgan cut its price target from $160 to $130 and maintained only a neutral rating, reinforcing a more cautious view on near-term upside. Article Title

CDW Company Profile

CDW NASDAQ: CDW is a leading provider of information technology products and integrated solutions for business, government, education and healthcare customers. The company sources and resells hardware and software from major technology vendors and packages those products with professional services, managed services and lifecycle support. Its offerings span IT infrastructure, cloud and data center solutions, cybersecurity, networking, unified communications, endpoint devices, and software licensing and procurement services designed to simplify IT operations for customers.

CDW combines a broad product portfolio with consultative sales, implementation and technical support capabilities.

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