Analysts have kept their fair value target for Arrow Electronics steady at US$94.00. This reflects updated assumptions for discount rate, revenue growth, profit margin and future P/E that refine, rather than overhaul, their prior view on the stock.
What's in the News
- Arrow Electronics is expanding distribution of Clavister's full cybersecurity portfolio from Sweden into 11 additional European markets, covering Belgium, Netherlands, Luxembourg, Poland, Norway, Finland, Denmark, Iceland, Estonia, Latvia and Lithuania (Key Developments).
- Under the expanded arrangement with Clavister, Arrow will use its pan European footprint, logistics capabilities and channel partner relationships to distribute next generation firewalls and identity and access management solutions across the new territories (Key Developments).
- From June 29, 2025 to September 27, 2025, Arrow Electronics reported no share repurchases under its existing program and stated it has completed the repurchase of 21,888,838 shares for US$2,567.04m, equal to 35.48% of the program announced on August 5, 2021 (Key Developments).
- For the fourth quarter ending December 31, 2025, Arrow Electronics issued earnings guidance that includes expected consolidated sales in a range of US$7.80b to US$8.40b, with global components sales of US$5.10b to US$5.50b and global enterprise computing solutions sales of US$2.70b to US$2.90b (Key Developments).
- The company also guided to diluted net income per share for the same quarter in a range of US$3.08 to US$3.28 (Key Developments).
Valuation Changes
- The fair value target remains unchanged at US$94.00 per share, indicating that the latest inputs leave the overall valuation level steady.
- The discount rate has been adjusted slightly from 9.90% to 9.91%, representing a very small refinement to the risk and return assumptions used in the model.
- The revenue growth assumption has moved from 5.67% to 5.24%, reflecting a modestly lower growth expectation in the updated analysis.
- The net profit margin has been reduced from 1.38% to 1.19%, indicating a slightly more conservative view on profitability.
- The future P/E has increased from 12.82x to 15.05x, implying a higher valuation multiple being used for the forward earnings input.
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