Shares of TD SYNNEX Corporation (NYSE: SNX) have received an average recommendation of “Moderate Buy” from twelve brokerages covering the stock, according to MarketBeat Ratings. Investors are encouraged by the recent upward revisions of price targets, as the average 12-month price target stands at an impressive $169.55.
Analysts have expressed optimism following the company’s solid quarterly earnings report. Two analysts have assigned a hold recommendation, while nine have issued buy ratings, and one has designated the stock as a strong buy. Recent reports highlight several key revisions. For instance, Barclays raised its price target on TD SYNNEX from $140.00 to $164.00, assigning an “equal weight” rating on September 26, 2023.
Similarly, Morgan Stanley increased its target from $173.00 to $181.00, labeling the stock as “overweight” on the same date. Zacks Research upgraded its rating from hold to strong buy on October 1, 2023. The Goldman Sachs Group also lifted its price target from $145.00 to $164.00 while maintaining a buy rating. Bank of America set its price objective at $180.00, reflecting a strong buy sentiment.
Institutional Investments and Recent Performance
A variety of hedge funds have adjusted their positions in TD SYNNEX recently. Nuveen LLC acquired a new position valued at approximately $121.3 million in the first quarter. Norges Bank followed suit with a new stake valued at around $124.6 million in the second quarter. Additional investments included Metropolis Capital Ltd with approximately $115.2 million and Alyeska Investment Group L.P., which invested approximately $135.6 million in the third quarter. Vanguard Group Inc. increased its holdings by 10.1% during the second quarter, now owning over 8.2 million shares valued at approximately $1.12 billion. Overall, institutional investors own 84% of the company’s stock.
On September 25, 2023, TD SYNNEX reported its quarterly earnings, revealing earnings per share (EPS) of $3.58, surpassing analysts’ expectations of $3.05 by $0.53. The company recorded a net margin of 1.27% and a return on equity of 12.13%. Revenue for the quarter reached $15.65 billion, exceeding forecasts of $15.11 billion and reflecting a year-over-year increase of 6.6%. For the upcoming fourth quarter of 2025, the company has set its EPS guidance between $3.45 and $3.95. Analysts predict a total EPS of $11.88 for the current fiscal year.
Dividend Announcement and Market Position
TD SYNNEX also declared a quarterly dividend, which was disbursed on October 31, 2023. Shareholders on record as of October 17, 2023 received a dividend of $0.44, with an ex-dividend date also noted as October 17, 2023. This brings the annualized dividend to $1.76, resulting in a yield of 1.2%. The company’s dividend payout ratio stands at 19.09%.
Trading on October 27, 2023, TD SYNNEX shares opened at $151.60. The stock has experienced a 52-week low of $92.23 and a high of $167.76. With a market capitalization of $12.35 billion, the company maintains a price-to-earnings (P/E) ratio of 16.44 and a P/E growth (P/E/G) ratio of 1.19. The firm exhibits a beta of 1.41, indicating a relatively higher volatility compared to the broader market.
As TD SYNNEX continues to adapt in the technology distribution landscape, recent analyst upgrades and solid earnings report reflect a strong position for the company moving forward.
