Ingram Micro (INGM) is positioned for year-over-year revenue growth across all business segments, driven by the recovery in the personal computer market, increasing demand for data center solutions, and opportunities in its higher-margin cloud business, BofA Securities said in a note on Monday.

Client and endpoint solutions, which represent over 60% of revenue, are projected to grow in the low single digits after experiencing high single-digit declines in 2022 and 2023, according to the note.

Revenues from the advanced solutions segment are expected to see an increase as well, thanks to a resurgence in networking following a time of inventory absorption and increased demand for servers, according to the note.

The market for personal computers was anticipated to bounce back in H2, however, this rebound appears to have been delayed, possibly to 2025, due to ongoing economic uncertainty leading customers to postpone their purchases.

BofA said it still anticipates a modest expansion in the global PC market for Q4 and Q1 2025, considering the need to replace older PCs, the end of support for Windows 10, and the demand for AI PCs.

"As revenues grow over the next few years, we see less capex spend and that, along with cost control and working capital management, can help drive higher annual cash flow," BofA said.

The company's extensive global reach allows it to support vendor partners aiming to relocate production due to shifting tariffs, the firm added.

BofA said potential risks for Ingram include a slower-than-expected PC market recovery, competitive pressures requiring price reductions, and a business mix that may skew toward lower-margin client and endpoint solutions.

The firm initiated coverage of Ingram with a buy rating and price objective of $30.

Price: 22.86, Change: +0.11, Percent Change: +0.48