Brean Capital Raises Price Target on SYNNEX Corp. (SNX) Following 3Q Report
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Brean Capital reiterated a Buy rating on SYNNEX Corp. (NYSE: SNX), and raised the price target to $124.00 (from $108.00), following the company's 3Q earnings report. SNX reported strong revenues and EPS of $3.7B and $1.73 compared to the Street's estimates of $3.5B and $1.56. Management expects November revenues to be within seasonal patterns of $3.83B - $3.93B with expected EPS of $2.06 - $2.11 vs. the Street's estimates of $3.77B and $1.93.
Analyst Ananda Baruah commented, "While SNX valuation begins to appear peaky, we believe SNX could be on the cusp of 1) redefining its OM structure and 2) perhaps moving the high-end of its valuation range from 14x. We're not arguing this, but the reality of this Q is that a) we believe SNX has reached 8.5% BPO OM's 1 - 2Q's ahead of what we'd anticipated, b) this places SNX in a position to overachieve '17 BPO OM's once it rolls past its bad fraud contract in the Feb Q, and c) with the stock at $113 in the aftermarket, it's very likely the stock opens up >14x Street EPS (be it '17 or "normalized"). We believe SNX could be in the process of positioning itself for $8.00 - $9.00 normalized / '18 EPS, and our new $124 TP (which seems incredibly fantastic, but we believe supported by SNX's recent results and best-of-breed ethos), is 14x our normalized EPS $8.00 - $9.00."
Shares of SYNNEX Corp. closed at $106.18 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesEarnings, Brean Capital
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