BUZZ-IT hardware slides after Morgan Stanley flags slowing enterprise demand

Reuters01-20
BUZZ-IT hardware slides after <a href="https://laohu8.com/S/MSPQL">Morgan Stanley</a> flags slowing enterprise demand

** U.S. IT hardware stocks slide after Morgan Stanley cut its industry view to "Cautious" from "In‑Line"

** Broker said "perfect storm" of slowing enterprise demand, rising input costs and rich valuations is pushing it to more defensive stance into 2026

** MS downgraded NetApp NTAP.O and Logitech LOGN.S, LOGI.O to underweight and cut CDW CDW.O to equal‑weight, while also lowering earnings estimates across much of its enterprise hardware coverage

** NTAP shares fell ~5% after the broker cut its price target to $89 from $117, warning that higher NAND costs and weaker storage spending could hurt profits

** LOGN down 6%, CDW down 2.1%

** MS now expects 1% year‑on‑year hardware spending growth in 2026, the weakest non‑COVID reading in 15 years, based on its latest CIO survey

** According to broker's survey, 30%–60% of customers are expected to cut PC, server and storage spending if OEMs raise prices to offset component cost inflation

** Broker flagged hardware sector trading at around 20x forward earnings, near historic highs and on what it described as near‑peak profit expectations

(Reporting by Rashika Singh in Bengaluru)

((Rashika.Singh@thomsonreuters.com;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment