---
title: "Avnet 'Cycle' Trends Improve as Backlog Extends, Lead Times Lengthen, BofA Says"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286285396.md"
description: "Avnet (AVT) is experiencing improved industry trends, with extended backlog and a book-to-bill ratio above 1 across all regions, according to BofA Securities. Inventory correction has largely passed, and the company is entering an upcycle with a cleaner balance sheet. Operating leverage is improving, with expenses decreasing to 70.2% of gross profit. BofA upgraded Avnet to neutral and raised its price target to $96, though cautioned about potential demand weakness in late 2026 and 2027. Avnet's stock price is currently at $84.72, up 3.17%."
datetime: "2026-05-13T14:59:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286285396.md)
  - [en](https://longbridge.com/en/news/286285396.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286285396.md)
---

# Avnet 'Cycle' Trends Improve as Backlog Extends, Lead Times Lengthen, BofA Says

10:59 AM EDT, 05/13/2026 (MT Newswires) -- Avnet (AVT) is showing improving industry "cycle" trends as "backlog" extends further out, "book-to-bill" ratios remain above 1 across all regions and lead times are lengthening in more than half of tracked product categories, BofA Securities said in a report Wednesday.

"Inventory correction" appears to have largely passed its trough, with Avnet showing "clear upcycle patterns" as inventory normalized to 77 days. The company is "entering the upcycle" with a cleaner balance sheet than in prior cycles, according to the report.

The firm also pointed to improving operating leverage as selling, general and administrative expenses declined to 70.2% of gross profit from 74.2% in the previous quarter.

Avnet's Farnell "catalog business" is also recovering and could see 50 to 100 basis points of sequential operating margin improvement as product mix improves and "cost discipline" continues, though the report said "demand remains uneven."

BofA upgraded Avnet to neutral from underperform and raised its price target to $96 from $66.

The firm cautioned that weaker end-market demand in the second half of 2026 and in 2027, slower recovery in Europe and Farnell, unfavorable "regional mix" and elevated Wall Street expectations could limit upside.

Price: 84.72, Change: +2.61, Percent Change: +3.17

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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