Optimism for economic recovery dwindles

摘要

Combining the fact that the upturn in technology spending is taking longer to materialize than first anticipated with uncertainty regarding the executive change at Arrow has resulted in Arrow's stock recently dropping to near 52-week lows and trading near book-value levels. Avnet's stock has dropped to similar levels in sympathy with Arrow. Although it is a contrarian view, we upgraded both Arrow and Avnet to strong buy ratings from neutral ratings on June 13 at prices of $19 and $18.95, respectively.