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On Friday, RBC Capital analysts reaffirmed their Outperform rating and $145.00 price target for TD Synnex stock (NYSE: SNX). This decision comes as the company prepares to release its fiscal second-quarter 2025 results later this month. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 15.1x, with analysts’ targets ranging from $118 to $156.
The analysts expect TD Synnex to report a quarter in line with expectations, benefiting from factors such as increased billings driven by pull-in demand, Windows 11 migration, and a PC refresh cycle. Despite acknowledging softer demand in Hyve, which may affect margins, the analysts anticipate a cautious approach to guidance due to ongoing macroeconomic uncertainties. The company has demonstrated solid financial performance with revenue growth of 4.6% and maintains a healthy current ratio of 1.27x.
TD Synnex management is expected to maintain its forecast for 3-4% revenue growth in the second half of 2025 and $1.1 billion in free cash flow for the full fiscal year 2025. This outlook reflects the company’s strategy to navigate the uncertain economic environment while capitalizing on growth opportunities. InvestingPro analysis suggests the stock is currently undervalued, with 8 additional exclusive insights available to subscribers.
The company’s fiscal second-quarter results are scheduled to be released on June 24, 2025, providing further insight into its performance and future prospects. Investors will be closely monitoring these results to assess the company’s ability to achieve its stated goals amid current market conditions, particularly given its track record of maintaining dividend payments for 12 consecutive years and recent 10% dividend growth.
In other recent news, TD SYNNEX (NYSE:SNX) has reported several key developments. The company announced the appointment of Kenneth Lamneck to its Board of Directors, where he will also serve as Chair of the Nominating and Corporate Governance Committee. In financial updates, TD SYNNEX’s first-quarter billings for fiscal year 2025 showed a year-over-year increase of 7.5%, with significant contributions from the Advanced Solutions and Endpoint Solutions segments. Despite lowering its revenue guidance for the second half of fiscal year 2025 due to IT spending uncertainties, analysts from Goldman Sachs and BofA Securities maintain positive ratings on the company, highlighting its growth strategy and potential in underpenetrated regions.
Additionally, RBC Capital Markets adjusted its price target for TD SYNNEX to $145 while keeping an Outperform rating, reflecting confidence in the company’s mid-term growth goals. The company’s strategic focus on sustainable growth and shareholder value was emphasized during its Investor Day, which outlined plans to return 50-75% of free cash flow to shareholders. TD SYNNEX shareholders also approved important charter amendments, including the removal of supermajority voting requirements, aimed at enhancing corporate governance.
These developments indicate TD SYNNEX’s ongoing efforts to navigate the competitive IT distribution landscape while prioritizing governance and strategic growth. The company’s focus on expanding its portfolio and increasing customer reach is seen as a strength by analysts, despite the challenges in the current economic environment.
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