Investment Thesis

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Competitive Moat

. Legislative changes affecting IT budgets in the public sector could create new opportunities or challenges for CDW, impacting future revenue streams.

Growth Engine

Future revenue growth for CDW is driven by a substantial total addressable market (TAM) in cloud services and cybersecurity, projected to grow at a compound annual growth rate (CAGR) of approximately 15% through 2028. The company is focused on organic growth through expanding its service portfolio, particularly in hybrid and cloud solutions, while also pursuing strategic acquisitions to bolster its capabilities. CDW is gaining market share in key segments, especially within public sector clients, as government agencies increasingly turn to outsourced IT solutions for efficiency and innovation.