CDW Corp (NASDAQ:CDW) saw its shares increase by 2.5% on Monday following the announcement that the company has completed the acquisition of Mission Cloud Services. Financial analysts have expressed a positive outlook on the transaction.
Analysts from Evercore ISI, who maintain an 'outperform' rating on CDW's stock, have set a price target (PT) of $225.
They stated, "While we don’t expect the transaction to have a material impact on CDW’s FY24 net sales or EPS, we view the deal favorably and believe this transaction further strengthens CDW’s cloud, software, and services (both managed and consulting) capabilities."
William Blair, also rating CDW as 'outperform,' commented on the strategic benefits of the acquisition.
According to William Blair, "The acquisition enhances CDW Digital Velocity, CDW’s cloud, data, AI, and software platform engineering organization."
They further elaborated on CDW's growth strategy, which includes capturing market share, attracting new customers, enhancing capabilities in high-growth solution areas, and expanding services capabilities. They believe that "the acquisition fulfills each of these strategy pillars."
The acquisition of Mission Cloud Services is expected to bolster CDW's offerings in the cloud sector, including software and service solutions, and aligns with the company's broader growth objectives.
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