Update shared on05 Sep 2025
Analysts maintained a cautious outlook on CDW due to ongoing weakness in the Education segment and unclear demand recovery timelines—despite strengths in Healthcare and Commercial divisions—resulting in an unchanged consensus price target of $206.80.
Analyst Commentary
- Mixed performance across business segments, with Healthcare and Commercial divisions showing strength while Education faces ongoing weakness.
- Positive peer results, particularly upside from TD Synnex, suggest potential outperformance or resilience for CDW in the near term.
- Price target reductions reflect tempered expectations following CDW’s Q2 report, highlighting lingering uncertainties in certain segments.
- Cautious outlook maintained due to an unclear timeline for demand recovery, preventing upgrades to bullish ratings.
- Neutral or equal weight stances signal balanced risk-reward, as recent performance factors are offset by external uncertainties.
What's in the News
- Repurchased 900,000 shares for $155.82 million in Q2 2025, completing 36.21% of total buyback authorized since 2014, totaling 54.6 million shares.
- Formed a strategic partnership with Asato Corporation to integrate AI-powered IT asset intelligence into CDW’s solutions portfolio, targeting enterprises, mid-market, and SMB customers.
- CDW added to the Russell 1000 Dynamic Index.
Valuation Changes
Summary of Valuation Changes for CDW
- The Consensus Analyst Price Target remained effectively unchanged, at $206.80.
- The Discount Rate for CDW remained effectively unchanged, at 8.85%.
- The Future P/E for CDW remained effectively unchanged, moving only marginally from 24.85x to 24.86x.
Disclaimer
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