Weakness in Avnet's Systems Business?

| About: Avnet Inc (AVT)

Credit Suisse’s Michael Walker this morning trimmed his profit projections for the electronics distributor Avnet (NYSE: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.