UPDATE: Stifel Nicolaus Ugrades Ingram Micro

In Monday's morning research summary, Stifel analyst Matthew Sheerin upgraded Ingram Micro (NYSE: IM) from Hold to Buy and announced a price target of $32.

Sheerin began the note by citing an approximate 15 percent drop in Ingram share price since April 22, which he believes was due to concerns that, despite cost-cutting, incremental investments would limit margin expansion.

In a contrasting view, Sheerin says Ingram management deserves more credit and sees an opportunity for the company improve on both operating expenses and gross margin. Sheerin is looking for these improvements to come aggressive cost cuts in the range of $80m-$100m (largely in Europe for the next two quarters) and new growth initiatives including recent acquisitions.

Looking forward, Sheerin expects Ingram to provide more details about its cost-reductions and margin-enhancements at its upcoming analyst day on June 25.