Ingram Micro’s FCF Growth Sparks Optimism: Analysts Back With Bullish Coverage – Ingram Micro Holding (NYSE:INGM)

Ingram Micro Holding Corp INGM shares remained volatile in early trading on Monday, after having shed almost 6% last week.

Here are takeaways from two analysts who initiated coverage of the stock.

Analyst Michael Ng initiated coverage with a Buy rating and price target of $33.

Ingram Micro among the largest IT solutions providers that works with vendors globally to cater to smaller markets, Ng said in his initiation note. The company has a broad portfolio of solutions and wide geographic footprint, he added.

“We expect INGM revenue growth to be directionally consistent with global IT spending and for margin expansion to be driven by operating leverage, automation investments in distribution centers, and its digital xVantage platform,” the analyst wrote.

The company is posed to achieve its target of over 30% free cash flow conversion, which should support its capital allocation priorities for tuck-in mergers and acquisitions (M&As) and annual dividends, he further stated.

Check out other analyst stock ratings.

Analyst Ruplu Bhattacharya initiated coverage with a Buy rating and price target of $30.

Bhattacharya said in his initiation note that each of Ingram Micro’s business segments could generate year-on-year revenue growth over the next several years, along with margin expansion and growth in free cash flows.

Sales in the company’s client and endpoint solutions business could grow in low single digits over the next few years, the analyst stated. “Advanced solutions segment revenues should also benefit from a rebound in networking after a period of inventory digestion and higher server demand (partly AI-related),” he further wrote.

INGM Price Action: Shares of Ingram Micro Holding are down 0.22% to $22.70 at the time of publication on Monday.

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