Analysts Adjust Rating and Price Targets for TD Synnex

Analysts offer mixed insights on TD Synnex. The report shows a shift in ratings with a notable revenue growth of 9.98%. As analysts raise price targets, investors should consider these changes in outlook for stock performance.

Date: 22-02-2025

AI Rating: 6

Analyst Ratings Insights
Recent evaluations by analysts on TD Synnex (NYSE: SNX) indicate a mixture of sentiment, from bullish to bearish. The latest ratings reveal that out of six analysts, one is bullish, three are somewhat bullish, and two are indifferent. This signals a cautious optimism among experts regarding the company's future performance.

Price Target Adjustments
The analysts’ 12-month price targets have seen a significant update, with the average now at $148.33, which surpasses the previous target of $134.83, reflecting a 10.01% increase. This upward adjustment in price targets could indicate expectations of positive performance, attracting investor interest.

Financial Performance Metrics
Several key financial metrics were highlighted: TD Synnex has achieved a revenue growth rate of 9.98% as of November 2024, indicating a strong upward trend in sales. This growth is notably better than its industry peers, suggesting that the company is effectively capturing market share.

However, the company’s net margin stands at 1.22%, which trails behind industry averages. This can indicate challenges in managing costs effectively, potentially raising concerns for investors regarding profitability. In addition, the return on equity (ROE) is reported to be 2.38%, also below the industry standard, indicating difficulties in generating satisfactory returns on shareholders' equity.

Moreover, the return on assets (ROA) is at 0.65%, further emphasizing challenges the company faces in asset efficiency. The debt-to-equity ratio of 0.49 reflects a conservative financial approach with less dependency on debt, which may instill confidence in a more stable financial strategy.

All in all, while there are areas of optimism regarding revenue growth and upward revisions of price targets, persistent challenges in profitability metrics may temper expectations for stock performance. Investors should weigh these factors carefully when making decisions.

Stocks: SNX