Update shared on 12 Nov 2025
Fair value Decreased 11%Analysts have lowered their price target for CDW from $203.40 to $182.00 per share. This change reflects softer near-term revenue outlooks and macroeconomic headwinds, despite expectations for improving profit margins and a shift toward higher margin businesses.
Analyst Commentary
Following the recent quarter and updated outlook, analysts have presented a range of perspectives regarding CDW’s near- and long-term prospects. Their commentary reflects both optimism about certain operational improvements and caution given external pressures.
Bullish Takeaways
- Bullish analysts point to the company’s ongoing mix shift toward higher margin software and services, which is expected to contribute positively to long-term profit growth.
- Cost discipline and margin improvement efforts are viewed as supportive of maintaining profitability, even in a more challenging revenue environment.
- Despite softer near-term guidance, the company’s execution on long-term strategic goals is seen as a foundation for eventual valuation recovery.
Bearish Takeaways
- Bearish analysts cite an uncertain spending environment, which may continue to pressure top-line growth through the coming quarters.
- Recent revenue reports have come in below expectations, leading to further skepticism about near-term execution and growth acceleration.
- Federal sales are facing additional headwinds as government shutdown impacts create further unpredictability in a key customer segment.
- These macroeconomic and sector-specific challenges are leading to more cautious price targets and tempered growth assumptions.
What's in the News
- CDW Corporation announced a quarterly cash dividend of $0.630 per common share to be paid on December 10, 2025. This represents a 1% increase over last year's dividend and is consistent with the company's payout target. (Key Developments)
- Between July 1, 2025 and September 30, 2025, CDW repurchased 900,000 shares for $150.23 million. This completed the buyback of 55,500,000 shares worth $5.66 billion under its ongoing program. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has fallen from $203.40 to $182.00 per share, reflecting a more cautious outlook.
- Discount Rate has risen slightly, increasing from 9.10% to 9.32%. This suggests analysts are applying a higher risk premium.
- Revenue Growth forecast has improved modestly from 3.57% to 3.64%.
- Net Profit Margin projection has edged higher from 5.49% to 5.59%. This indicates expectations for incremental profitability gains.
- Future P/E estimate has decreased from 24.54x to 20.93x, signaling lower expected valuation multiples.
Disclaimer
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