Loop Capital Raises TD Synnex Target on Strong IT Demand and Growth Momentum

TD SYNNEX (NYSE: SNX) is a prominent player in the technology distribution and services industry. The company provides a wide range of IT products and services, catering to various sectors. SNX competes with other major distributors like Ingram Micro and Arrow Electronics. On September 25, 2025, SNX reported impressive financial results, showcasing its strong market position.

For the quarter ending August 2025, SNX reported earnings per share (EPS) of $3.58, surpassing the estimated $3.02. This represents a significant improvement from the $2.86 EPS reported in the same period last year. The earnings surprise for this quarter stands at +18.54%, highlighting the company's ability to exceed market expectations consistently.

SNX's revenue for the quarter was approximately $15.65 billion, exceeding the estimated $15.11 billion. This marks a 6.6% increase compared to the previous year's revenue of $14.68 billion. The revenue surprise of 3.41% further underscores the company's robust performance and growth trajectory in the competitive electronics industry.

The company's financial health is further supported by a gross profit increase of 17.6%, reaching $1.13 billion. The gross margin improved by 68 basis points, moving from 6.54% to 7.22%. These metrics indicate efficient cost management and enhanced profitability, which are crucial for sustaining long-term growth.

SNX's financial ratios provide additional insights into its market valuation and financial stability. With a price-to-earnings (P/E) ratio of approximately 17.40 and a price-to-sales ratio of about 0.21, the market values SNX's earnings and sales favorably. The debt-to-equity ratio of approximately 0.49 suggests a moderate level of debt, while a current ratio of around 1.26 indicates the company's ability to meet short-term liabilities.

• The consensus price target for NYSE:SNX has increased from $148.22 to $173 over the past year, indicating growing analyst optimism.
• TD SYNNEX reported strong results in the second quarter, with significant revenue growth, improved profit margins, and impressive cash generation.
• The upcoming third-quarter earnings report is expected to reflect higher earnings, supporting the positive sentiment around the stock.

TD SYNNEX Corporation (NYSE:SNX) is a prominent player in the business process services sector, offering a wide range of products and solutions. The company distributes PC systems, mobile phones, IT systems, and consumer electronics. It also provides systems design, logistics, cloud services, and marketing services to resellers, system integrators, and retailers. This diverse portfolio positions TD SYNNEX as a key player in the technology distribution industry.

The consensus price target for SNX has been on an upward trend over the past year. A year ago, the average price target was $148.22, which increased to $155.6 in the last quarter, and further rose to $173 in the past month. This suggests growing optimism among analysts about the company's stock performance. The positive trend in price targets may be linked to the company's strategic initiatives and market expansion efforts.

TD SYNNEX's recent financial performance supports this optimism. In the second quarter, the company reported strong results, surpassing its guidance with significant revenue growth, improved profit margins, and impressive cash generation. The company's business model, which focuses on scale, efficient management of working capital, and consistent free cash flow, underpins its high-quality economic framework. This has likely contributed to the upward revision of price targets.

As highlighted by Stifel Nicolaus analyst Matthew Sheerin, the upcoming third-quarter earnings report is anticipated to reflect higher earnings for TD SYNNEX. The stock has already experienced a 5.8% increase since its last earnings report 30 days ago. Despite Sheerin's price target of $130, which is lower than the current consensus, the overall sentiment remains positive, with a valuation analysis suggesting a fair value between $170 and $175.

Investors and stakeholders should keep an eye on the upcoming earnings report and any company announcements that could further influence analyst sentiment and the stock's target price. The company's strong financial performance, coupled with a 6% trailing free cash flow yield and steady dividend growth, strengthens the investment case for TD SYNNEX.

TD Synnex (NYSE:SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. The company provides a wide range of technology products and services, catering to various industries. As a major player in the IT distribution sector, TD Synnex competes with other large firms like Ingram Micro and Arrow Electronics.

On June 25, 2025, David Paige from RBC Capital set a price target of $145 for SNX, which was trading at $137.79 at the time. This suggests a potential price increase of approximately 5.23%. The analysis, published by Benzinga, highlights the growth potential of TD Synnex, despite facing short-term margin pressures.

The company's recent upgrade to a "buy" rating follows its strong second-quarter 2025 results. These results demonstrated broad-based growth, strong execution, and improved demand visibility. The turnaround of Hyve and new transparency have resolved significant overhangs, with demand resuming from major customers, contributing to clear growth.

TD Synnex's aggressive capital returns through buybacks and dividends are supporting the stock. These actions are aiding in achieving the company's target of double-digit EPS growth. The stock has experienced a price change of $0.91, reflecting a percentage increase of 0.66%, with a current price of $137.79.

The stock has fluctuated between a low of $133.75 and a high of $138.08 today. Over the past year, SNX has reached a high of $145.10 and a low of $92.23. The company's market capitalization is approximately $11.56 billion, with a trading volume of 1,569,971 shares.

TD SYNNEX (NYSE:SNX) reported solid fiscal second-quarter results that exceeded expectations on both the top and bottom line. As a result, the company’s shares rose more than 5% intra-day today.

Adjusted earnings per share came in at $2.99, beating the $2.71 analyst consensus. Revenue grew 7.2% year-over-year to $14.95 billion, also topping forecasts of $14.3 billion. Non-GAAP gross billings rose 12.1% to $21.6 billion, while the company maintained a stable operating margin of 2.8%.

CEO Patrick Zammit credited the strong performance to continued momentum in IT distribution and hyperscaler markets, as well as disciplined execution that allowed TD SYNNEX to outperform industry growth.

Looking ahead, the company issued Q3 guidance for adjusted EPS in the range of $2.75 to $3.25, straddling the $2.96 consensus. Revenue is expected between $14.7 billion and $15.5 billion, slightly above Wall Street’s $15.02 billion estimate at the midpoint.

Regionally, the Americas led with $9.0 billion in revenue, up 5.3%, while Europe climbed 10.5% to $4.9 billion. Asia-Pacific and Japan posted an 8.7% increase to $1.0 billion, reflecting broad-based growth.

Despite the positive results and outlook, the stock’s modest decline suggests investors may be weighing near-term volatility or margin pressures against the company’s longer-term trajectory.

TD SYNNEX (NYSE:SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. The company provides a wide range of technology products, services, and solutions to its clients. As SNX prepares to release its quarterly earnings on June 24, 2025, Wall Street analysts have set their sights on an earnings per share (EPS) estimate of $2.69 and projected revenue of approximately $14.3 billion.

Analysts expect SNX's earnings per share to decline by 1.5% year-over-year, despite a 2.7% increase in revenue to $14.3 billion. This mixed outlook reflects the company's ability to grow its top line while facing challenges in maintaining its profit margins. Over the past month, the consensus EPS estimate has been revised upward by 1%, signaling a positive shift in analysts' expectations.

The market will be closely monitoring SNX's performance to see if it can exceed these estimates. Surpassing expectations could lead to a rise in the stock price, while failing to meet them might result in a decline. The company's price-to-earnings (P/E) ratio of 15.19 suggests a moderate market valuation of its earnings, while its price-to-sales ratio of 0.18 indicates a relatively low market valuation compared to its sales.

SNX's enterprise value to sales ratio stands at 0.24, reflecting its total valuation in relation to revenue. However, the enterprise value to operating cash flow ratio is notably high at 167.32, which may indicate a premium valuation or lower cash flow generation relative to its enterprise value. The company's earnings yield of 6.58% provides insight into the return on investment for shareholders.

With a debt-to-equity ratio of 0.54, SNX maintains a moderate level of debt compared to its equity, suggesting a balanced approach to financing. Additionally, the current ratio of 1.27 indicates that the company has a reasonable level of liquidity to cover its short-term liabilities. As SNX approaches its earnings release, investors will be keen to see how these financial metrics influence the company's future performance.

TD SYNNEX (NYSE:SNX) shares plunged over 16% intra-day today, after the company reported disappointing fiscal first-quarter results and issued underwhelming guidance for Q2, sparking investor concern about near-term performance.

For Q1, the company posted adjusted earnings per share of $2.80, falling short of analyst expectations of $2.91. Revenue came in at $14.53 billion, below the $14.79 billion consensus, as growth momentum slowed.

The outlook for the current quarter further weighed on sentiment. TD SYNNEX projected Q2 adjusted EPS between $2.45 and $2.95, well below the $3.03 expected by analysts, and revenue in the range of $13.9 billion to $14.7 billion, compared to forecasts of $14.72 billion.

Management pointed to its broad IT portfolio, global scale, and targeted go-to-market strategy as drivers of long-term competitiveness. However, the immediate focus for investors remained on the earnings shortfall and cautious guidance, which signaled a more tepid environment for IT spending in the months ahead.