Back to top

Analyst Blog

Technology distribution company, Ingram Micro (IM - Analyst Report) inked a deal earlier this week with NanoTech Entertainment, Inc., a global leader in 3D and manufacturing technology, for the distribution of NanoTech´s Nuvola NP-1 4K UHD streaming video player to channel partners in the U.S.

The Nuvola NP-1 features 2GB DDR RAM, 16GB internal flash storage and has external connections for USB storage devices. In addition, this media player uses the NVIDIA Tegra 4 processor available on Android OS devices and can also access the Google Play Store. The distribution of the device in the U.S. will help Ingram Micro to expand its market share and increase sales growth.

According to a recent survey by NPD Display, approximately 1.9 million Ultra HD/4K TV products will be shipped in the current year with the number increasing to 12.7 million units in 2014. Thus Ingram is likely to benefit from this increasing trend and expand its supply-chain solutions portfolio. On the other hand, NanoTech will benefit from increased geographical presence with a vast distribution network.  

Apart from this, Ingram Micro recently announced the expansion of its mobility lifecycle services to Latin America (LATAM) through Ingram Micro Mobility. The expanded services will provide a complete solution to manufacturers, retailers, network operators, resellers and existing Ingram Micro customers.

Moreover, we believe that the cost benefits of cloud computing are pushing different companies toward massive information technology restructuring and upgrades. This is one of the reasons that SMBs have been investing in the area despite the economic weakness that has led to a slump in overall IT spending. We expect this to work in favor of distributors like Ingram.

Though the company’s significant European exposure and high debt burden are concerns, we are positive about Ingram Micro’s strategic relationship with networking giant Juniper Networks Inc.(JNPR - Analyst Report), as well as other big technology companies, such as Hewlett-Packard Company (HPQ - Analyst Report), IBM Corp. and Microsoft Corp.

Currently, Ingram Micro has a Zacks Rank #4 (Sell).

 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%