Brean Capital Feels Confident About SYNNEX Corporation Following Investor Dinner

In a report published Thursday, 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 following our investor dinner last night with CEO Kevin Murai and CFO Marshall Witt. We came away incrementally convicted in SNX's potential for organic revenue growth in the core Technology Solutions business in ‘15, in addition to Operating Margin expansion in both segments of the business. Specifically, our contention for Y/Y Operating Margin expansion is underpinned by: 1) core Tech Solutions margin expansion via Opex leverage, and margin improvement in Japan, 2) Concentrix margins should expand following completion of integration, driven by a focus on higher margin contracts as well as increased cost efficiency, and 3) SNX's Hyve Solutions continues to grow rapidly, and the higher margin nature of this business should positively impact Tech Solutions mix. Our $90 TP represents a 12x multiple on our '16 EPS of $7.40.” SYNNEX Corporation closed on Wednesday at $78.01.