Avnet $AVT stock did an Ascending TriangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... breakout on July 19, 2022, in the daily time frame. The TTM Squeeze indicator has given a buy signal.
$AVT Price Target Lowered to $43 at Goldman Sachs
On July 15, 2022, Goldman Sachs analyst Toshiya Hari lowered the firm’s price target on $AVT to $43 from $45 and kept a Sell rating on the shares. The analyst again cut estimates and targets across the semiconductor sector to reflect “continued deterioration in the macro/operating environment and recent industry data points.” Hari revised down 2023 earnings estimates for semiconductor and semiconductor capital equipment names by 20% on average and now models 2023 estimates that are 22% and 27% below Street consensus, respectively. The analyst expects the group to remain under pressure until Street estimates are “sufficiently de-risked, per our recent conversations with investors.”
Avnet initiated with an Underweight at JP Morgan
On July 14, 2022, JPMorgan analyst Joseph Cardoso initiated coverage of $AVT with an Underweight rating and a $46 price target. The company has “aggressive” revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... growth targets that are ahead of underlying IT spending forecasts, Cardoso tells investors in a research note. While Avnet shares are trading at an “inexpensive” multiple, there are limited near-term catalysts to drive a re-rating to normalized levels, says the analyst.
Avnet Announces Global Strategic Collaboration Agreement with Amazon Web Services
On June 21, 2022, through a new global strategic collaboration agreement, Avnet $AVT and Amazon Web Services (AWS) are focused on helping Original Equipment Manufacturers (OEMs) of IoT solutions accelerate their time to market. This multi-year, joint investment will enable Avnet’s IoTConnect Platform to deliver the breadth and depth of AWS’ portfolio of services—creating a scalable, secure platform that preconfigures AWS’ services for application-specific usage.
Avnet’s IoTConnect Platform helps OEMs design connected solutions to overcome time-to-market pressures, scalability, reliability, and security. Many OEMs today are lean organizations that need to continue to invest in the resources that provide differentiated value and deliver the expertise to their market. Adding cloud-connected experiences to their product offerings often strains these organizations because IoT requires additional software, security, and cloud management skillsets. Having access to pre-integrated and abstracted capabilities that they can quickly assemble and deploy can significantly accelerate their efforts and reduce overhead.
This strategic collaboration provides Avnet’s IoTConnect Platform with access to AWS’ portfolio of services, including IoT, machine learning, analytics, and compute services. Avnet customers will soon have access to an aggregated IoT development experience across AWS services, including AWS IoT Core, AWS IoT Greengrass, FreeRTOS, AWS IoT Analytics, and AWS IoT SiteWise. The collaboration between Avnet and AWS will benefit OEMs by providing: (a) Device provisioning, configuration, and lifecycle management, (b) Multi-layer security, (c) Multi-protocol connectivity, (d) Integration of 3rd party services, API gateway, SDKs, (e) Business Intelligence (BI) with data monitoring, analytics, and notifications, (f) Pre-built business applications. This allows OEMs to focus on the development of features and applications that genuinely elevate their connected products and accelerates time to market.
Powered by AWS, Avnet’s IoTConnect Platform will provide advanced capabilities such as pre-integrated edge-to-cloud hardware designs and entire lifecycle secure device and identity management. It will also offer OEMs seamlessly scalable full-stack solutions that include hardware agnostic edge designs and tailored business applications and analytics. All of these capabilities will be delivered through a single aggregated experience via Avnet’s IoTConnect Platform, which enables OEMs, systems integrators, and software developers to secure, monetize and support end-customer solutions.
“Today, Avnet lives at the intersection of connected technology by regularly working with leading hardware manufacturers and building our expertise at the edge and cloud. With our help, OEMs don’t have to go it alone to deliver simple, fast, and secure IoT implementations,” said Lou Lutostanski, Vice President of IoT, Avnet. “Our collaboration with AWS will help OEMs design, build, deploy and manage cloud-connected devices, applications, and solutions at scale.”
On April 27, 2022, the company reported third-quarter sales of $6.5 billion, up from $5.9 billion sequentially and $4.9 billion in the prior-year quarter. On a constant currency basis, sales grew 35.7% year over year and 11.4% sequentially.
Avnet sees Q4 adjusted EPS of $1.90 to $2 versus the consensus estimate of $1.49. The company forecasts Q4 revenue of $6B to $6.4B versus the consensus estimate of $5.76B.
The company has posted remarkable sales growth over the last five quarters.