Morgan Stanley reports that the 1H2023 performance of Dicker Data (ASX:DDR) demonstrates how improving supply chains are benefiting its working capital.

The stability in the computer parts distributor’s working capital provides the company the opportunity to navigate past near-term difficulties.

Shares saw an increase of up to 3.45%, reaching their highest point since September 15 at A$9.9.

Morgan Stanley has decided to maintain its ‘overweight’ rating on the company, raising its price target from A$10 to A$11.

However, the firm notes slowing demand and PC inventory driven unfavorable movements in the working capital as key risks for the company.

The ‘buy’ equivalent is the average rating of brokerages, with a median price target of A$9.7 according to London Stock Exchange Group.

Compared to the 30-day average volume of 182,961 shares, about 128,000 shares were traded.

As of the last closing, the stock is down 6.1% for the year.

Dicker Data (ASX:DDR) is an Australian computer parts distributor.