IT distributors have 'compelling valuations'
On which planet would that be?
It's tough being a IT distie - managing the drip-drip effect of margin squeeze, of reduced co-op marketing budgets, of vendor consolidation and seeing the month's profits wiped out by a collapsing customer.
So it is nice to see that some disties are coping.
In its latest channel checks, Banc of America writes: "We believe that distributors continue to play a vital role in the supply chain," Forbes.com reports.
The investment house acknowledges that direct marketing companies will grow "organically faster" than the market as a whole and looks for "two-tier distributors to grow organically at around the rate of the broader IT market".
Synnex and Tech Data shares are looking "particularly attractive", following a recent price correction in IT distribution stocks, it says.
More at Forbes.com.