Ingram Micro Seen Benefiting From Xvantage, AI Demand, RBC Says

MT Newswires Live
Mar 26

Ingram Micro (INGM) could see stronger profitable growth from Xvantage efficiencies, a bigger mix of cloud and advanced services, and rising AI-related demand, RBC said in a note Wednesday.

The company is now in the third stage of its Xvantage plan, where it aims to use data to lift growth and margins without adding more operating costs, RBC said.

Xvantage should also keep improving revenue quality as the company pushes more higher-margin advanced services and cloud sales through the platform, the investment firm said.

RBC said AI infrastructure and GPU demand remain an important long-term growth area, adding that Ingram Micro can build on those lower-margin hardware deals with higher-margin services and cloud offerings, while near-term PC demand could stay better than expected as customers buy ahead of higher prices.

RBC kept its outperform rating for Ingram Micro with a $24 price target.

Price: 23.01, Change: +0.22, Percent Change: +0.97

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