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Bull of the Day

We expect overall demand and margins to improve at Arrow Electronics (ARW) as volumes ramp up. The recent acquisitions should positively impact the margins and bottom line. The addition of Nu Horizons will enhance the company's design capabilities in the fast-growing Asia-Pacific region, as well as complement Arrow's leading technology portfolio in the Americas and Europe.

Earlier, Arrow Electronics Inc. reported solid results for the fourth quarter, beating the Zacks Consensus Estimate by a penny. Expecting improved performances in the coming quarters, we maintain our Outperform recommendation.

Although the company faced tough times between late 2008 early 2009, its performance has been improving steadily since then. We believe there is a lot of upside potential in the stock as of now and set a target price of $51.00 based on a P/E multiple of 9.7x.

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