Janney Montgomery Scott Initiates Coverage on Systemax (SYX) with a Buy; Anticipate Double Digit Revenue Growth
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Janney Montgomery Scott initiates coverage on Systemax Inc. (NYSE: SYX) with a Buy. Price target $23.
Janney analyst says, "We anticipate double digit revenue growth driven by a strong PC product cycle coupled with new store openings, store remodels, and online growth from a strong portfolio of brands including TigerDirect, MISCO, CompUSA, and Circuit City. Additionally, gross margin should improve due to an increase in brick and mortar sales, stronger purchasing power, and a positive product mix shift. We also anticipate SG&A leverage on existing infrastructure. Valuation is compelling as the stock is currently trading at 12x P/E versus our fair value estimate based on 16x P/E multiple (2010).
"We see upside to our fair value estimate as revenues, margins, earnings and the multiple should all
expand over the next two years."
To see all the upgrades/downgrades on shares of SYX, visit our Analyst Ratings page.
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