Morgan Stanley Upgrades CDW Corporation to 'Buy' with New Price Target
Morgan Stanley has set a new price target of $170 for CDW Corporation, upgrading its rating to 'buy', a 31.72% upside from the current price.
Key Points
- On June 23, 2026, Morgan Stanley upgraded CDW Corporation to a 'buy' rating and set a new price target of $170.
- Morgan Stanley's $170 price target implies 31.72% upside from CDW Corporation's ($CDW) current $129.06 share price.
- Shares of CDW Corporation traded near $125.99 on Tuesday with a market cap of approximately $15.79 billion.
- Insider transactions show multiple purchases on June 10, 2026, while institutional investors like BlackRock and Harris Associates increased their holdings.
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Morgan Stanley has raised its price target for CDW Corporation (NasdaqGS: CDW) to $170, upgrading the stock to a 'buy' rating. This change was announced on June 23, 2026, by analyst Erik Woodring, reflecting a positive outlook on the company's performance.
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CDW Corporation Stock Down 12.6%
Shares of CDW Corporation traded near $125.99 on Tuesday. The company has a market cap of about $15.79 billion and a P/E ratio of 15.03. Its forward P/E is 10.62, and it carries a beta of 0.987, indicating slightly less volatility than the market. The stock's 52-week range is between $97.12 and $183.91. CDW's 50-day moving average is $124.86, while the 200-day moving average stands at $136.47. The company has a current ratio of 1.165 and a quick ratio of 1.015, with a debt-to-equity ratio of 240.52.
$CDW price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
In its latest earnings report, CDW Corporation posted revenue of $22.9 billion, showing a growth rate of 9.2%. The company's earnings per share were $8.22, with a net margin of 4.7% and a return on equity of 44.16%. Investors can look forward to the next earnings announcement on August 5, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
5 target cuts vs 0 raises.
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EPS & revenue
EPS missed estimates by 1.2%. Revenue beat estimates by 2.7%.
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Profit surprise
EBITDA missed by 32 percent. Operating income missed by 43 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
5 target cuts.
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Earnings quality
Gross margin down 0.6 points. Positive free cash flow.
Earnings Call Summary
CDW had a strong first quarter with net sales up 9 percent and gross profit up 6 percent, beating revenue expectations by about $147 million but missing earnings per share by 15 cents. The quarter was driven by customer urgency to buy hardware infrastructure, especially servers and networking equipment for AI applications, amid memory pricing uncertainty. Commercial customers led growth at 10 percent, and the company is rolling out AI tools to its sales teams to improve efficiency. Management expects the elevated backlog to support second quarter growth and believes margin pressure from heavy hardware mix will ease in the second half as customers balance spending across services and software.
Guidance CDW expects gross profit to grow low to mid-single digits for all of 2026, now raised from mid-single-digit guidance. Full year non-GAAP earnings per share expected to grow at the high end of mid-single digits. For the second quarter, they expect gross profit to grow high single digits from the first quarter and mid-single digits year over year.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Dividend
CDW Corporation pays an annual dividend rate of $2.52, yielding 1.96% at current price levels. The dividend payout ratio stands at 30.57%.
Insider Buying and Selling at CDW Corporation
Several insiders purchased shares of CDW Corporation on June 10, 2026. Lynda Clarizio, Virginia Addicott, and others bought shares at an average price of $129.30. Notably, Peter Locy, the Senior Vice President, Controller, and Chief Accounting Officer, acquired 19 shares.
Analysts Set New Price Targets
On June 23, 2026, Morgan Stanley upgraded CDW Corporation to a 'buy' rating and set a new price target of $170. This follows other recent analyst actions: Citigroup maintained a 'hold' rating with a $123 target on May 8, 2026, while UBS kept a 'buy' rating with a $147 target on May 7, 2026. The consensus among analysts is a 'buy' recommendation, with a mean target price of $142 based on nine opinions.
About CDW Corporation
CDW Corporation, headquartered in Vernon Hills, Illinois, provides information technology solutions across the United States, United Kingdom, and Canada. The company operates through segments including Commercial, Government, and Education, offering a range of IT products and services. Led by CEO Christine A. Leahy, CDW employs approximately 14,800 people and serves business, government, education, and healthcare customers.
Bottom Line
Morgan Stanley's upgrade of CDW Corporation to a 'buy' with a $170 price target suggests confidence in the company's future prospects. Investors often track such analyst updates as they provide insights into market sentiment and potential stock performance. Remember, these analyst ratings and price targets are based on past data and projections; actual results may vary.
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