Weakness in Avnet's Systems Business?

Credit Suisse’s Michael Walker this morning trimmed his profit projections for the electronics distributor Avnet (AVT) for both the June 2007 fiscal year and fiscal 2008.

While he expects the September quarter to be in line with the consensus view of $3.58 billion in revenue and profits of 52 cents a share, and he says semiconductor business remains stable, Walker also says the company is seeing soft demand for computer systems, anticipating lower-than-seasonal acceleration in the December quarter.

He cut his fiscal 2007 projection to $2.19 a share from $2.25; for fiscal ‘08 he’s now at $2.48, down from $2.55.

Walker maintains his Outperform rating on the stock and $24 price target. He also notes that Avnet is trading for about book value, “which has been a trough valuation for distributors going back several cycles.”

Avnet shares this morning have slipped 14 cents to $20.81.