Shares of Ingram Micro Inc., the Santa Ana-based distributor of technology products, software and consumer electronics, fell Monday after an analyst downgraded the stock.
The stock dipped 3% on a recent market value of about $3 billion.
Banc of America Securities LLC analyst Ananda Baruah lowered his rating on Ingram’s shares to “neutral” from “buy” because the company has met all of his targets for the stock.
Baruah said he’s “stepping aside for now” because shares are approaching his $21 target. The stock was trading at around $19 on Monday.
The factors that would have bumped up the stock have already been accounted for, Baruah said in a research note.
He had been recommending the company based on a few factors: Ingram has been gaining profitable U.S. share, demand remains strong and its restructuring effort is expected to payoff during the second half of the year.
“They have largely played out as expected as sentiment shifted more positive through the June quarter,” Baruah said.
Ingram has been focused on reining in its expenses and finding ways to mitigate higher costs for energy and fuel.
Last year it launched a cost-cutting plan that’s expected to save $18 million to $24 million a year.
The company is expecting to see sales of $8.5 billion to $8.8 billion in the current quarter.
The low end of its range would cut close to analysts’ outlook of $8.7 billion in revenue.
