SNX: Future Returns Will Be Driven By Strength In Cloud And Hyve

TD SYNNEX's analyst price targets have risen notably, with recent increases ranging from $9 to $33 per share. Analysts cite strengthening demand, broad-based earnings outperformance, and optimistic forecasts following robust fiscal Q3 results.

Analyst Commentary

Analyst reactions to TD SYNNEX's latest quarterly results reflect both strong optimism and a measure of caution regarding the company's future performance and valuation. The following key perspectives highlight the critical factors that are shaping the Street's outlook.

• Bullish analysts see robust fiscal Q3 results as evidence of the company's ability to execute. Broad-based earnings outperformance and revenue growth have surpassed previous expectations.
• Strong growth drivers are highlighted across core IT categories. These include ongoing PC refresh cycles, significant expansion in high-margin areas such as Hyve, software, and cloud, as well as management's operational discipline supporting margin upside.
• Recent price target hikes are attributed to continued customer demand and improving market conditions. Billings and guidance have both exceeded consensus estimates, reflecting optimism for upcoming quarters.
• Future earnings growth expectations have been raised, with some analysts projecting EPS meaningfully ahead of consensus for the next fiscal year. This reinforces confidence in TD SYNNEX's long-term trajectory.

• Bearish analysts express caution that the current PC cycle may be nearing its peak, raising questions about the sustainability of recent momentum and revenue trends.
• There are concerns that while forecasts for Q4 billings growth remain positive, the company's guidance may be conservative. This could potentially limit upside if demand slows unexpectedly.
• Some note disappointment over projections for free cash flow, with expectations that annual FCF could fall below $1 billion for the first time in two years. This may be a headwind for valuation relative to prior years.
• Continued strong results are partly attributed to favorable end-market dynamics, but the ability to maintain outperformance as market conditions normalize remains an open question among more cautious analysts.

What's in the News

• TD SYNNEX launched the PartnerFirst Digital Bridge AI Assistant for Microsoft Teams in North America, enabling resellers to access real-time product intelligence, pricing, inventory, and enablement resources within the Teams platform. Dell Technologies has already started collaborating on additional real-time updates. (Key Developments)
• The company announced the TD SYNNEX Global FinOps Practice powered by IBM Cloudability, providing partners with the tools to optimize multi-cloud financial management, forecasting, and reporting for improved business outcomes. (Key Developments)
• TD SYNNEX introduced its AI Infrastructure-as-a-Service offering in North America, partnering with Nebius to provide scalable, cost-effective access to NVIDIA GPU-powered AI infrastructure without requiring upfront hardware investments. (Key Developments)
• David Jordan has been appointed as the new Chief Financial Officer, succeeding Marshall Witt, who will transition out of the role in 2025. (Key Developments)
• TD SYNNEX completed an additional $173.83 million share buyback from June to August 2025, bringing the total buyback since March 2024 to over $639 million, representing 6.17% of shares. (Key Developments)

Valuation Changes

• Fair Value remains unchanged at $178.36 per share, indicating stability in the underlying valuation assessment.
• Discount Rate has increased slightly from 9.33% to 9.36%, which reflects a modest adjustment in perceived risk or required return.
• Revenue Growth projection is unchanged at approximately 4.70%.
• Net Profit Margin remains steady at approximately 1.38%.
• Future P/E has risen slightly from 17.35x to 17.36x, indicating a marginally higher multiple being applied to future earnings.