TD SYNNEX Receives Analyst Upgrades, Signaling Bullish Outlook in IT Sector

Analysts at Barclays have upgraded their target price for TD SYNNEX (NYSE: SNX) from $111.00 to $118.00, indicating a potential upside of 4.25% from the stock's current price. The brokerage maintains an "equal weight" rating on the IT distributor. Additionally, TD SYNNEX has received target price revisions from several other analysts: Royal Bank of Canada raised theirs to $110.00, Cfra to $113.00, JPMorgan Chase & Co. to $113.00, and StockNews.com upgraded the stock to a "buy" rating.

TD SYNNEX (NYSE:SNX) has been the subject of several recent research reports from Wall Street analysts. Barclays upgraded the business services provider's stock from an "equal weight" rating to an "overweight" rating and lifted its price target from $111.00 to $118.00 in a report issued on Wednesday. The brokerage now sees a 4.25% upside potential for the stock based on its new target price.

Royal Bank of Canada also raised its price objective on TD SYNNEX, moving it from $97.00 to $110.00, while maintaining a "sector perform" rating on the stock in a research note published on Wednesday, January 10th. Cfra, in a report released on Tuesday, increased its target price on the company from $110.00 to $113.00 and maintained a "hold" rating.

On Monday, January 8th, JPMorgan Chase & Co. downgraded TD SYNNEX from an "overweight" rating to a "neutral" rating, but simultaneously raised its price target from $112.00 to $113.00. Finally, StockNews.com upgraded the stock from a "hold" rating to a "buy" rating in a report dated Thursday, December 21st.

Of the five research analysts covering the stock, four have assigned a buy rating, one has issued a strong buy rating, and five have given it a hold rating. MarketBeat.com data indicates that TD SYNNEX currently has a consensus rating of "Moderate Buy" and an average price target of $114.33.

Share Performance and Financial Results

TD SYNNEX shares traded up $0.92 to $113.19 during midday trading on Wednesday, with 208,589 shares exchanging hands. This volume is lower than the company's average daily volume of 712,168 shares. The stock has a 52-week range of $86.30 to $114.35.

The company reported its latest quarterly earnings results on Tuesday, January 9th. TD SYNNEX beat analysts' consensus estimates for both earnings and revenue. The business services provider reported earnings per share of $3.13 for the quarter, surpassing the $2.56 estimate by $0.57. The company's revenue for the quarter was $14.41 billion, slightly below the consensus estimate of $14.54 billion. TD SYNNEX reported a net margin of 1.09% and a return on equity of 12.34% for the quarter.

Analyst Outlook and Target Prices

Analysts generally have a positive outlook on TD SYNNEX. The consensus rating of "Moderate Buy" and an average price target of $114.33 indicate that analysts believe the stock has potential for upside. The highest price target of $118.00 from Barclays represents a significant premium to the current market price.

Insider Transactions

Insider activity at TD SYNNEX has been moderate in recent months. On Wednesday, January 17th, Director Fred A. Breidenbach sold 3,849 shares of the stock for a total value of $398,794.89, at an average price of $103.61 per share. Following the transaction, Breidenbach now owns 18,148 shares of the company, valued at approximately $1,880,314.28.

Insider Michael Urban sold 5,000 shares of TD SYNNEX stock on Thursday, January 11th, for a total value of $518,350.00. The shares were sold at an average price of $103.67 each. Urban now directly owns 36,131 shares of the company, valued at approximately $3,745,700.77.

Institutional Ownership

Institutions hold a significant portion of TD SYNNEX shares. According to the company's most recent 13F filing, institutional investors own 84.00% of the outstanding shares. Vanguard Group Inc. is the largest shareholder, with a 5.38% stake in the company, followed by BlackRock Fund Advisors with a 4.31% stake and Geode Capital Management LLC with a 3.23% stake.

Company Overview

TD SYNNEX Corporation is a global distributor and solutions aggregator for the information technology (IT) ecosystem. The company operates through four business segments: North America Technology Solutions, International Technology Solutions, Advanced Solutions, and End-to-End Supply Chain Services. TD SYNNEX provides a wide range of products and services, including personal computing devices, mobile phones, printers, servers, storage, networking, and cloud solutions.

The company serves a diverse customer base that includes resellers, system integrators, managed service providers, corporate enterprises, and government agencies. TD SYNNEX has a global presence with operations in over 150 countries and employs approximately 22,000 people worldwide.

Conclusion

TD SYNNEX is a leading provider of IT products and solutions with a strong financial performance and a positive outlook from analysts. The company's recent earnings beat and the upgrades from Barclays and Royal Bank of Canada indicate that analysts believe TD SYNNEX is well-positioned to continue its growth in the future. The stock's potential upside of 4.25% based on Barclays' target price makes it an attractive investment opportunity for investors looking for growth in the IT sector.