CDW Shares Rise Following Acquisition of Mission Cloud Services

CDW Corp (NASDAQ:CDW) shares rose 2.5% on Monday following the announcement that the company has completed its acquisition of Mission Cloud Services. Financial analysts expressed a positive outlook regarding this transaction.

Evercore ISI analysts, who maintain an 'outperform' rating for CDW shares, set a price target (PT) of $225. They stated, "While we do not expect this transaction to have a significant impact on CDW's net sales or earnings per share for fiscal year 2024, we view the deal positively and believe it further strengthens CDW's cloud, software, and services (both managed and consulting) capabilities."

William Blair, also rating CDW as 'outperform', commented on the strategic benefits of the acquisition. According to William Blair, "This acquisition enhances CDW Digital Velocity, CDW's cloud, data, artificial intelligence, and software platform engineering organization."

They further detailed CDW's strategy to increase market share, attract new customers, enhance capabilities in high-growth potential solution areas, and expand services capabilities. "They believe this acquisition addresses each of the strategic pillars mentioned."

The acquisition of Mission Cloud Services is expected to enhance CDW's offerings in the cloud sector, including software and services solutions, and align with the company's broader growth objectives.