Ingram Micro initiated with a Buy at Redburn Atlantic

Redburn Atlantic initiated coverage of Ingram Micro (INGM) with a Buy rating and $30 price target implying potential upside of 25%. With IT spending poised to accelerate, Redburn views “leading global IT distributor” Ingram Micro’s re-entry to the public equity market via its October initial public offer as timely, the analyst tells investors in a research note. The firm says that over the long term, global scale and benefits from sustained investment in technology and distribution should enable the company to enhance its market position, and the combination of double-digit earnings growth, balance sheet deleverage and improving free cash flow generation should support a gradual re-rating of the shares.