UPDATE: Stifel Downgrades SYNNEX Corp. (SNX) to Hold

December 7, 2020 10:59 PM EST
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Price: $104.31 -1.32%

Rating Summary:
    11 Buy, 2 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 25 | Down: 19 | New: 35
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(Updated - December 8, 2020 7:57 AM EST)

Stifel analyst Matthew Sheerin downgraded SYNNEX Corp. (NYSE: SNX) from Buy to Hold with a price target of $85.00 (down from $156). The downgrade is the lack of a catalyst after last week’s spin-off of its services business, Concentrix Corporation (NASDAQ: CNXC).

The analyst stated "Although we believe the standalone SNX business is well positioned within its core markets (IT distribution, cloud-related manufacturing), with a best-in-class management team, we are pressed to find a meaningfully positive catalyst for shares over the next six months, and valuation appears fair. We await more color from management (likely when it reports 4Q'FY20 earnings in early January) before updating our model, but we currently anticipate FY21 EBITDA of $542mn (or 6% y/y growth) excluding Concentrix. Shares trade at roughly 9.4x forward EV/EBITDA ex-Concentrix, a premium to most peers".

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 $80.94 yesterday.

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