Needham & Company Downgrades SYNNEX Corp. (SNX) to Hold

Needham & Company downgraded SYNNEX Corp. (NYSE: SNX) from Buy to Hold following mixed Q2 and disappointing guidance.

Analyst Richard Kugele commented, "While we see many of the issues weighing on SYNNEX’s results as temporary (currency, Japan, replacement of the Beats business), the recurring profitability problems with a major Concentrix contract are now being exacerbated by a need to be incrementally “selective” in certain tech solutions business deals to maintain margin. We've seen SNX execute far better than most, but we believe the current struggles will leave the stock range-bound until growth can reaccelerate. Downgrading to Hold from Buy."

The firm cut FY 2015 EPS from $6.54 to $6.17 and FY 2016 EPS from $6.97 to $6.47.

For an analyst ratings summary and ratings history on SYNNEX Corp. click here. For more ratings news on SYNNEX Corp. click here.

Shares of SYNNEX Corp. closed at $82.34 yesterday.

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