Synchronoss Technologies (SNCR) Valuation Range Lifted at Wells Fargo Following Solid Q3

November 8, 2016 9:59 AM EST
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Price: $39.18 +3.35%

Rating Summary:
    11 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Wells Fargo analyst Gray Powell reiterated an Outperform rating and raised his valuation range on Synchronoss Technologies (NASDAQ: SNCR) to $48-50/share from $44-45 following solid Q3 results with strong cloud ramp expected in 2017.

Powell commented, "SNCR reported slightly better than expected Q3 results and guided Q4 ahead of street estimates. Specifically, SNCR exceeded street Q3 revenue and EPS ests by almost 2%. In addition, Q4 revenue guidance was 1.5% and EPS was 4% above street forecasts. We were particularly pleased by the Q4 revenue guidance as many had expressed concerns that growth expectations for 2016 were too second half weighted and potentially difficult to achieve. Upside in Q3 and in the outlook was entirely driven by SNCR's cloud business. In contrast, Q3 activation trends were in line but Q4 expectations were light. On this front, management mentioned it is exploring strategic alternatives for its activation business due to slowing growth. Lastly, initial insights on its 2017 cloud outlook were better than expected. We are increasing our 2016/2017 EPS ests to $2.58/$3.15 from $2.53/$3.06 previously. Our new valuation range is $48-50/share vs $44-45/share previously. We reiterate our Outperform rating on the stock."

For an analyst ratings summary and ratings history on Synchronoss Technologies click here. For more ratings news on Synchronoss Technologies click here.

Shares of Synchronoss Technologies closed at $39.62 yesterday.

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