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Investing.com - RBC Capital has raised its price target on TD Synnex (NYSE:SNX) to $180.00 from $165.00 while maintaining an Outperform rating on the stock. The new target aligns with InvestingPro’s analysis, which indicates the stock is currently undervalued despite trading near its 52-week high after a strong 29.5% year-to-date gain.
The technology distributor delivered what RBC described as a "beat-and-raise quarter" with 12% year-over-year billings growth to $22.7 billion, according to the research note.
This growth was driven by ongoing PC refresh cycles, mid-30% growth in the company’s Hyve business, and continued strength across cyber, software, and cloud segments.
RBC noted that TD Synnex’s margins exceeded estimates, which the firm attributed to the company’s focus on higher-margin categories, operational discipline, and improved cost leverage.
While TD Synnex lowered its free cash flow guidance to approximately $800-850 million, RBC considered this less concerning given strong year-to-date growth, improved cash conversion, and expectations for continued momentum in the Hyve business. For deeper insights into TD Synnex’s valuation and 13 additional ProTips, visit InvestingPro.
In other recent news, TD SYNNEX reported stronger-than-expected earnings for the third quarter of 2025. The company achieved an earnings per share of $3.58, surpassing analysts’ forecasts of $3.04, resulting in a 17.76% surprise. Revenue also exceeded expectations, reaching $15.7 billion compared to the anticipated $15.11 billion. These results highlight a robust financial performance for the company. Additionally, TD SYNNEX has launched PartnerFirst, a new digital platform aimed at enhancing the digital experience for its North American partners. The platform integrates various commerce features with educational and community resources. The company plans to expand this platform to other regions in the future. These developments reflect TD SYNNEX’s strategic initiatives to strengthen its market position.
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