Brean Capital Sees Support for Bullish Thesis on SYNNEX Corporation

In a report published Tuesday, Brean Capital analyst Ananda Baruah reiterated a Buy rating and $90.00 price target on

. In the report, Brean Capital noted, “We reiterate our Buy rating and $90 TP (27% appreciation) following a very strong Nov Q report and Feb Q guide, which we'd view as supportive of our bullish investment framework. Specifically, we continue to be encouraged with SNX's ability to drive growth and solid Operating Leverage in its core Technology Solutions business, while investing into its recently acquired IBM BPO business with an eye towards higher margin contract wins. In fact, a key driver of our L-T EPS assumptions is the integration and ramping of the IBM BPO business – and on yesterday's call, management continued to express confidence in its goals of delivering above-market growth (5%+) and double-digit Operating Margins in the Concentrix business (currently 8.52%). As such, we believe Y/Y Operating margin expansion in '15 is increasingly likely. Our $90 TP is ~12x our '16 EPS estimate of $7.40.” SYNNEX Corporation closed on Monday at $70.97.