TD SYNNEX Corporation: Strong Buy Rating Driven by Growth in IT Distribution and Cloud Infrastructure

TD SYNNEX Corporation (SNX – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Erik Woodring from Morgan Stanley maintained a Buy rating on the stock and has a $145.00 price target.

Erik Woodring has given his Buy rating due to a combination of factors that highlight TD SYNNEX Corporation’s strong position in the IT distribution sector. The company benefits from long-term IT spending trends and an increasingly complex IT ecosystem, which are expected to drive growth. TD SYNNEX’s significant exposure to cloud infrastructure spending and its ability to execute efficiently and scale cost-effectively are seen as key strengths that support above-peer growth and margins.
Furthermore, Woodring notes that TD SYNNEX has a broad reach across the IT spending landscape, with a substantial portion of its business tied to faster-growing data center technologies. The company’s scale advantages in developed markets and its expanding presence in emerging markets contribute to its compelling free cash flow conversion, which supports strong capital returns. These factors are expected to lead to accelerating top-line growth and operating margins that exceed those of core distribution peers, making the stock undervalued at its current price and offering a favorable risk-reward profile.

In another report released on June 5, RBC Capital also maintained a Buy rating on the stock with a $145.00 price target.

Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SNX in relation to earlier this year.