Brean Murray Reiterating Buy On Tech Data Corp. (TECD)

Brean Murray is reiterating its Buy rating and $60 price target on shares of Tech Data Corp. TECD. In a note to clients, Brean Murray writes, "Reiterate our Buy thesis and $60 target after attending Tech Data's analyst day. We believe TECD can continue driving operating margin expansion through strong leverage and pricing discipline, with incremental upside from higher growth/higher margin businesses. Additionally, Tech Data will continue to use acquisitions and higher growth businesses to shift away from less profitable businesses while generating operating leverage in the core distribution from strategic investments such as its SAP system, which has now been deployed across both U.S. and Europe. Management now guides its L-T operating margin above 1.5% in CY12 (FY13), which means the 1.5% OM could come sooner than our expectation (we're currently modeling 1.44% in CY11 and 1.48% in CY12)." Shares of TECD closed at $52.07 yesterday.