In a report released yesterday, Ruplu Bhattacharya from Bank of America Securities reiterated a Buy rating on TD SYNNEX Corporation, with a price target of $180.00.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Ruplu Bhattacharya has given his Buy rating due to a combination of factors that support both near-term performance and long-term value creation for TD SYNNEX. He expects a solid upcoming quarter even though it is typically seasonally weaker, noting that historical momentum from Windows 11 and AI-related PC demand has been strong, with only modest caution around higher memory costs potentially tempering PC demand. His financial model assumes low single‑digit revenue growth that could prove conservative if the company continues to deliver the mid single‑digit billings CAGR discussed at its analyst day, and he projects about 11% EPS growth for fiscal 2026, supported by operating leverage and a strategic tilt toward higher-margin products and services. He also highlights the company’s broad portfolio and cross-selling potential as structural drivers of earnings growth, justifying a target price above the current trading level.
Bhattacharya further points to the ongoing recovery and strength in the Hyve business, where earlier headwinds tied to specific hyperscale customers have largely been resolved, and he expects this segment to contribute meaningfully to both revenue and margins. While he acknowledges continued weakness in the federal and broader public-sector verticals, he views robust demand for AI and industry-standard servers as offsetting factors, even if storage and networking trends remain more muted for now. In his view, capital allocation discipline adds to the investment case: management intends to return 50–75% of free cash flow via buybacks and dividends, while pursuing select tuck-in acquisitions that can generate returns above those of share repurchases and align with long-term strategic priorities. Taken together, these elements underpin his conviction that the stock offers an attractive risk‑reward profile at current levels, meriting a Buy recommendation and a $180 price objective.
In another report released yesterday, Barrington also maintained a Buy rating on the stock with a $182.00 price target.
SNX’s price has also changed slightly for the past six months – from $139.520 to $151.000, which is a 8.23% increase.