Scansource Inc (SCSC) Stock AnalysisSCSCScansource Inc

ScanSource, Inc. is a technology distributor converging technologies and to accelerate growth for channel sales partners across hardware, software as a service (SaaS), connectivity and cloud services. It uses multiple sales models to offer technology solutions from suppliers of specialty technologies, connectivity and cloud services. Its segments include Specialty Technology Solutions and Intelisys & Advisory. The Specialty Technology Solutions segment operates primarily in the United States and Brazil and includes specialty technology solutions distributed through a wholesale/resale sales model. This segment includes hardware, SaaS and subscription services. The Intelisys & Advisory segment operates in the United States and consists of sales and services to both channel sales partners and end users. This segment also includes Connectivity and Software-Defined Networking, Unified Communications as a Service and Contact Center as a Service, Security, Cloud/Data Center, among others. It operates in the Technology sector (WHOLESALE-COMPUTERS & PERIPHERAL EQUIPMENT & SOFTW industry).

ScanSource Inc is currently priced at $60.02, which is above the analyst target of $51, suggesting it may not be a good buy at this moment. The RSI is at 46.39, indicating it is neither overbought nor oversold, and the forward P/E ratio is 11.78, which is relatively attractive. However, the recent news indicates challenges with flat sales and a weak free cash flow margin of 2.9%, which could hinder growth. The main risk is the current price being 17.5% above the analyst target, suggesting potential downside.

4 analysts cover SCSC: 2 rate it Buy, 2 Hold and 0 Sell. The average price target is 43.00.