UPDATE: Citi Lowering Price Target On Tech Data Corp

Citi Investment Research is out with a research report on Tech Data Corp TECD and is lowering its price target to $54 from $63, but is reiterating its Buy rating on shares. In a note to clients, Citi Investment Research writes, "TECD reported revs and EPS upside driven by above-seasonal growth in Europe (58% of revs). While mgt admitted that there were pockets of weakness in the region (ie. Spain, Portugal), demand in larger markets such as Germany and UK remains resilient. Furthermore, mgt appears to be encouraged by recent trends, prompting them to guide a mid-single digit organic growth in both the US and Europe during 3FQ. Meanwhile, the company repurchased about 7% of shares outstanding during the quarter, and we believe they could buy an additional 5% given the depressed valuation of the shares (12% below tangible book). We remain constructive on TECD following a strong quarter, and reiterate our Buy rating with a revised 12- month target of $54." Shares of TECD lost $1.05 yesterday to close at $41.46.