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Synnex Gets A Price Target Boost From Brean Capital

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SYNNEX Corporation (NYSE: SNX) reported its May quarter revenue and EPS results and August quarter guidance ahead of expectations. Brean Capital’s Ananda Baruah maintained a Buy rating for the company, while raising the price target from $97 to $108. Terming SYNNEX as a “classically strong operational company,” the analyst recommended to buy dips and pullbacks.

May Quarter Results

SYNNEX reported its revenue and EPS at $3.4B and $1.37, ahead of the Street expectations of $3.3B and $1.35, respectively. Revenue growth came in at 3.9 percent y/y.

August Quarter Guidance

Management guided to revenue and EPS at $3.40B - $3.53B and $1.52 - $1.57, versus Street expectations of $3.40B and $1.53, respectively. The guidance reflects 2-6 percent y/y revenue growth and 7 percent y/y EPS growth.

“Management believes that IT spending appears to be seasonal across the board with the expectations of a solid Canada market, a steady U.S. business environment, and a stabilizing Japan,” analyst Ananda Baruah wrote.

Although execution seems to be getting back on track into the back half of the year, shares had already appreciated and near-term gains could be capped, Baruah commented.

Latest Ratings for SNX

DateFirmActionFromTo
Jan 2018Pivotal ResearchUpgradesHoldBuy
Dec 2017SunTrust Robinson HumphreyInitiates Coverage OnBuy
Oct 2017Pivotal ResearchInitiates Coverage OnHold

View More Analyst Ratings for SNX
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Posted-In: Ananda Baruah Brean CapitalAnalyst Color Long Ideas Price Target Reiteration Analyst Ratings Trading Ideas

 

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