Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. The company is also encountering challenges, including inflationary pressure and high cost of labor & raw materials, due to which it does not foresee a decline in pricing in the near term. On the other hand, Farnell’s gross margin declined due to the negative impacts of unfavorable sales mix and competitive pricing pressures.