Morgan Stanley has increased its price target for TD Synnex (SNX, Financial) from $145 to $155 while maintaining an Overweight rating on the stock. Recent Q2 earnings surpassed expectations, and the guidance for Q3 aligns with market forecasts, although there is a cautious tone embedded. The analyst notes that demand is improving more than anticipated. The company is performing well, and its Hyve division is gaining traction, prompting a 3% rise in the analyst's FY25 earnings per share forecast following the earnings report.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for TD Synnex Corp (SNX, Financial) is $144.09 with a high estimate of $160.00 and a low estimate of $130.00. The average target implies an upside of 5.27% from the current price of $136.88. More detailed estimate data can be found on the TD Synnex Corp (SNX) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, TD Synnex Corp's (SNX, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for TD Synnex Corp (SNX, Financial) in one year is $122.51, suggesting a downside of 10.5% from the current price of $136.88. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the TD Synnex Corp (SNX) Summary page.
SNX Key Business Developments
Release Date: June 24, 2025
- Gross Billings: $21.6 billion, up 12% year over year.
- Net Revenue: $14.9 billion, up 7% year over year.
- Gross Profit: $1 billion, up 7% year over year.
- Gross Margin: 5% of gross billings, a decline of 21 basis points year over year.
- Non-GAAP Operating Income: $414 million, up 7% year over year.
- Non-GAAP Net Income: $251 million.
- Non-GAAP Diluted EPS: $2.99, above the upper end of guidance.
- Free Cash Flow: Approximately $543 million.
- Shareholder Returns: $186 million returned, including $149 million in share repurchases and $37 million in dividends.
- Cash and Cash Equivalents: $767 million.
- Debt: $4.1 billion.
- Gross Leverage Ratio: 2.4 times.
- Net Leverage Ratio: 1.9 times.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- TD Synnex Corp (SNX, Financial) reported a strong second quarter with gross billings growing 12% year over year, exceeding the high end of their guidance.
- The company experienced significant growth in software billings, particularly in cloud, cybersecurity, and infrastructure software, with a 20% increase.
- TD Synnex Corp (SNX) was recognized with over 40 honors in the channel, including being named HPE's global distribution partner of the year.
- The company achieved a four-day improvement in its cash conversion cycle and generated approximately $543 million in free cash flow for the quarter.
- TD Synnex Corp (SNX) continues to see strong growth in PCs, driven by the refresh cycle, and has also seen a return to growth in networking after multiple weak quarters.
Negative Points
- Despite strong growth, TD Synnex Corp (SNX) is cautious about the macroeconomic environment, including potential impacts from global trade developments and geopolitical tensions.
- Gross margins declined by 21 basis points year over year, primarily due to unrealized FX losses and program mix.
- The company noted a demand pull forward, particularly in PCs, which may impact future quarters' performance.
- Interest expenses and finance charges were slightly higher than expectations, impacting overall financial performance.
- There is uncertainty regarding the impact of tariffs and other economic factors, leading to a cautious outlook for the second half of the year.
