UPDATE: Brean Capital Raises PT On SYNNEX On Positive Outlook

In a report published Tuesday, Brean Capital analyst Ananda Baruah reiterated a Buy rating on SYNNEX Corporation SNX, and raised the price target from $85.00 to $90.00. In the report, Brean Capital noted, “We reiterate our Buy-rating and are raising our TP to $90 (from $85), as we believe SNX's overall mix continues to shift favorably with the integration of the recently acquired IBM BPO business, legacy Concentrix business, and growing traction with SNX's Hyve offering – all of which favorably impact margin and revenue growth. As such, our sum-of-the parts analysis suggests that SNX could ultimately command a ~13x-~14x P/E multiple (11x multiple on Core Distribution; and 15x multiple on Concentrix), which yields a $90 valuation (Figure 1) on CY'16 EPS potential of $7.35 (~10% EPS growth on CY'15 EPS of $6.70). Additionally, we view the anticipated Windows Server refresh cycle along with a stable PC environment as boding favorably for SNX over the course of '15, which we believe will help the company manage EPS expectations and deliver on them accordingly. In fact, we note that unlike other IT Distributors, SNX does not have any European exposure, and as such, does not include any European-associated macro risk.” SYNNEX closed on Monday at $77.56.