Brean Capital Raises Price Target on SYNNEX Corp. (SNX) Following 2Q Beat
Brean Capital reiterated a Buy rating on SYNNEX Corp. (NYSE: SNX), and raised the price target to $108.00 (from $97.00) following the company's 2Q earnings report. SNX reported revenue and EPS of $3.4B and $1.37, both ahead of the Street's estimates of $3.3B and $1.35. Management commented that SNX outperformed by singledigit range in a flat but stable U.S. demand environment, powered by higher growth in SMB and public sector.
Analyst Ananda Baruah commented, "Beat and raises from strong companies are typically buy-able events, and as such we maintain our Buy rating of this classically strong operational company. That said, SNX trades at 14x - 15x, what has been a peak-multiple post-recession, and in that context N-T appreciation could be capped, particularly if last evening's 4%+ aftermarket move is sustained. In any event, we'd be buying dips and pulls-backs. We're raising our TP to $108 from $97 as we view SNX as ultimately a $105 - $110 stock (or 14x SNX's "normalized" EPS of $7.50 - $8.00)."
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Shares of SYNNEX Corp. closed at $94.00 yesterday.