Roth Capital Sets Buy Rating On PC Connection, $26 PT


In a research report issued today, Roth Capital analyst Jeff Martin re-established estimates on PC Connection (NASDAQ:PCCC) with a Buy rating and a $26 price target.

Martin commented: “We believe PCCC can execute on mid single digit revenue expansion and drive EPS leverage through modest gross margin expansion and expense leverage. The addition of technical resources, primarily engineers, facilitates modest growth above the broader IT market. Consolidation of a fragmented market also allows for potential accretive acquisitions. The analyst added, “We value PCCC at $26 per share by applying an 8.0x multiple to our 2015 EBITDA estimate of $78.9M. Currently, PCCC trades at a discount to peers on an EV/EBITDA basis. In our view, the company should trade closer to CDW’s valuation of 10.8x trailing EBITDA given its cash flow generation, conservative balance sheet, shareholderfriendly management and operating efficiency, offset by a discount for lack of shareholder control.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jeff Martin has a total average return of -0.8% and a 45.5% success rate. Martin is ranked #2304 out of 3324 analysts.

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