Shares of TD SYNNEX Corporation (NYSE: SNX) are receiving positive attention from analysts, with an average price target set at $169.55. This figure follows a series of upgrades from various brokerages, reflecting a consensus recommendation of “Moderate Buy” from twelve firms covering the company, according to MarketBeat Ratings.
Among the analysts, two have rated the stock as a hold, while nine have issued buy recommendations. One analyst has gone further, assigning a strong buy rating. Notable recommendations include Barclays, which raised its price target from $140.00 to $164.00 and maintained an “equal weight” rating in a report dated September 26, 2023. Similarly, Morgan Stanley increased its target from $173.00 to $181.00, issuing an “overweight” rating on the same day.
The momentum continued with Zacks Research upgrading TD SYNNEX from a “hold” to a “strong buy” rating on October 1, 2023. Additionally, Goldman Sachs lifted its price target from $145.00 to $164.00, while Bank of America increased its price objective from $170.00 to $180.00, maintaining a buy rating.
Strong Institutional Interest
Recent activity among institutional investors further underscores the positive outlook for TD SYNNEX. Notably, Nuveen LLC acquired a new position in the company worth approximately $121.26 million during the first quarter. In the second quarter, Norges Bank purchased a stake valued at around $124.62 million, while Metropolis Capital Ltd invested approximately $115.17 million.
Moreover, Alyeska Investment Group L.P. bought a new stake valued at about $135.63 million in the third quarter. Vanguard Group Inc. also boosted its holdings by 10.1%, now owning 8,248,639 shares valued at $1.12 billion. Overall, institutional investors control approximately 84% of the company’s stock.
Financial Performance and Market Data
Trading on October 25, 2023, TD SYNNEX shares opened at $151.60, showing a slight decline of 0.6%. The company’s stock has a 50-day moving average of $154.09 and a 200-day moving average of $144.32. Over the past year, shares have fluctuated, hitting a low of $92.23 and a high of $167.76.
The company reported its quarterly earnings on September 25, 2023, revealing earnings per share (EPS) of $3.58, surpassing the consensus estimate of $3.05 by $0.53. With revenue reaching $15.65 billion, it exceeded analysts’ expectations of $15.11 billion and marked a 6.6% increase from the same period last year.
For the upcoming fourth quarter in 2025, TD SYNNEX has provided guidance for EPS between $3.450 and $3.950. Analysts project that the company will achieve an EPS of 11.88 for the current fiscal year.
In addition to its earnings report, TD SYNNEX announced a quarterly dividend of $0.44, paid on October 31, 2023, to investors of record as of October 17, 2023. This dividend reflects an annualized yield of 1.2% and a payout ratio of 19.09%.
TD SYNNEX Corporation, a key player in the information technology (IT) distribution space, continues to show robust growth and investor interest. The company’s diverse offerings range from personal computing devices to advanced data center technologies, positioning it well for future performance in the evolving IT landscape.
