Needham & Company Downgrades Tech Data (TECD) to Hold

Needham & Company downgraded Tech Data (NASDAQ: TECD) from Buy to Hold following Q4 results and outlook which was hurt by FX. The firm sees the stock range bound.

Analyst Richard Kugele commented, "The number of moving parts at TECD continues to increase, making accurate forecasting challenging. Between the slowdown toward the end of F4Q, the currency translation headwinds, the exiting of lower-margin business lines/regions, the return of the PC business to more normal levels post the XP refresh, and the possibility of a Windows 2003 Server/data center spending cycle, we see an unusually large amount of puts and takes impacting the business. As such, at current levels we believe the estimate revisions make the risk/reward for the stock balanced. Likely range-bound for the next couple quarters, we downgrade TECD to Hold from Buy."

FY 2016 EPS from $2.01 to $1.86 and FY 2017 EPS set at $2.10.

For an analyst ratings summary and ratings history on Tech Data click here. For more ratings news on Tech Data click here.

Shares of Tech Data closed at $57.40 yesterday.

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