SYNNEX Shares Rally As Raymond James Upgrades From Underperform To Outperform

Raymond James analyst Brian Alexander upgraded shares of SYNNEX Corporation SNX Wednesday morning. The analyst moved his investment recommendation on the company and its shares several notches from Underperform to Outperform and set a new price target of $87.

"...we believe both EPS estimates and valuation multiples have overcorrected, leaving a more attractive risk/reward profile," Alexander said. "To be clear, we believe an adjustment was warranted given our view that
expectations were unreasonably high. However, estimates and valuation multiples declined by 10% each over this period, and we actually see 2H16 estimates as conservative per our increased estimates..."

Alexander boosted SYNNEX FY16 EPS estimates from $6.11 to $6.16 and the FY17 EPS estimate from $7 to $7.05. The analyst consensus estimate for the company's FY16 and FY17 are at $6.07 and $6.83, respectively.

As shares of SYNNEX closed Wednesday's session up 5 percent at $84.03, the Raymond James analyst's new price target represents about 3.5 percent of possible upside.