In a report released yesterday, Ruplu Bhattacharya from Bank of America Securities reiterated a Buy rating on TD SYNNEX Corporation (SNX – Research Report), with a price target of $120.00.
Ruplu Bhattacharya’s Buy rating for TD SYNNEX Corporation hinges on a positive outlook for the second half of fiscal year 24, where an anticipated boost in billings and revenue is expected. Despite a slight miss in F4Q23 revenues, the shift in product mix towards higher-margin items bolstered profit margins, surpassing the forecasted figures. This mix shift, along with a significant earnings beat, provided a strong financial performance even after adjusting for lower tax rates and share count benefits. Additionally, the anticipation of new customer ramp-ups and a gradual recovery in IT spending, specifically in Endpoint Solutions, underpins the belief in the company’s potential for growth.
Moreover, the stabilization of the market in the Americas and the outperformance in Europe support the company’s solid positioning. The decision to increase the dividend by 14% reflects financial strength and a commitment to shareholder returns, with a guided 50% return of F24 free cash flow to shareholders. The adjustment of revenue and EPS estimates for F24, alongside the unchanged price-to-earnings multiple, has led to an increased price objective, further justifying the Buy recommendation. Ruplu Bhattacharya’s analysis suggests confidence in TD SYNNEX’s long-term shift towards higher-margin products and services, along with the company’s broad portfolio and cross-selling opportunities.
According to TipRanks, Bhattacharya is an analyst with an average return of -1.8% and a 53.62% success rate. Bhattacharya covers the Technology sector, focusing on stocks such as Flex, Jabil, and Sanmina-Sci.
In another report released yesterday, Barrington also maintained a Buy rating on the stock with a $122.00 price target.
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TD SYNNEX Corporation (SNX) Company Description:
SYNNEX Corp. engages in the provision of distribution, logistics and integration services for the technology industry. It operates through the following segments: Technology Solutions and Concentrix. The Technology Solutions segment distributes peripherals, IT systems including data center server and storage solutions, system components, software, networking equipment, consumer electronics, and complementary products. The Concentrix segment offers a portfolio of strategic solutions and end-to-end business services to customers in industry vertical markets. The company was founded by Robert T. Huang in November 1980 and is headquartered in Fremont, CA.
Read More on SNX:
- TD Synnex increases quarterly dividend 14% to 40c per share
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