- Bank of America Merrill Lynch downgrades Arrow Electronics (NYSE:ARW) from Buy to Neutral citing limited earnings growth in 2020 and operating margins that peaked last year.
- The firm sees headwinds from an inventory correction and is subbing in low-margin volume fulfillment in Asia, which BofAML estimates "will result in a 50bp decline in component op. margin for C2019 (by our estimate) and result in a y/y EPS decline."
- Price target drops from $97 to $80.
- ARW shares are flat pre-market at $76.15.