Analyst Note| Brian Colello, CPA |
Narrow-moat Avnet reported strong fiscal second-quarter results, with both the top and bottom lines exceeding the high end of previous guidance by a healthy margin. The company's strong showing was bolstered by robust demand in Asia. Also, due to the resumption of manufacturing activity after pandemic-induced slowdowns, the company also saw strong demand in the auto and industrials verticals. We maintain our $32 fair value estimate for this narrow-moat name. With shares trading around $37, we view Avnet shares as overvalued.