BofA/Merrill Lynch analyst Ruplu Bhattacharya downgraded Avnet (AVT) to Neutral from Buy after the company gave more details on the impact of the Texas Instruments (TXN) disengagement during its earnings call, stating that it will lose about $2B of annual revenue and implying an annual EPS impact of about $1.15. Although the TI business was "low-margin fulfillment" and Avnet announced an incremental $35M in restructuring on top of its previously announced plan, the company will be hurt in the near-term from having a larger infrastructure and workforce while being faced with lower revenues, Bhattacharya said. Lower volumes in the near-term due to both the TI disengagement plus a weak macro environment will hurt margins over the next 3-4 quarters, said Bhattacharya, who thinks some can be offset by benefits from added restructuring. The analyst cut the price target on Avnet shares to $44 from $47.