TD SYNNEX (SNX): Evaluating Valuation After Analyst Upgrades Signal Brighter Growth Prospects

TD SYNNEX (SNX) has recently seen several analysts revise their earnings forecasts upward, which points to increased confidence in the company’s future growth. This shift follows strong analyst ratings and positive style scores.

See our latest analysis for TD SYNNEX.

TD SYNNEX’s recent momentum has caught attention, with its strong analyst ratings and upgraded earnings forecasts arriving alongside a robust 28% total shareholder return over the past year. While the 1-day and 7-day share price returns cooled off a bit, the long-term trend remains impressive. Investors have seen their money more than double over five years. This blend of upbeat forecasts and proven returns is fueling a sense that growth potential remains on the table.

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But with shares still trading nearly 20% below analyst price targets and boasting strong value scores, the key question now is whether TD SYNNEX remains an overlooked value or if the market has already accounted for its growth prospects.

Most Popular Narrative: 16.2% Undervalued

With TD SYNNEX’s latest close at $149.48 and the most popular narrative suggesting fair value at $178.36, there is a compelling case for continued upside, fueled by evidence of structural growth drivers in the business.

The continued enterprise-wide digital transformation and AI adoption, highlighted by double-digit growth in software (especially in cloud, cybersecurity, virtualization, and infrastructure software), is extending TD SYNNEX's addressable market and generating higher recurring revenue streams. This is likely to drive consistent revenue and margin expansion.

Read the complete narrative.

Want to know the numbers fueling this bold outlook? One massive trend in technology is factored into the narrative’s forecast, influencing assumptions for profit and revenue growth. The catch? It depends on how quickly new tech adoption occurs and higher margins are achieved. Discover the aggressive targets, along with the calculated risk behind each, when you explore the full story.

Result: Fair Value of $178.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, margin pressures and the potential for softer demand following recent purchase pull-forwards could present challenges to TD SYNNEX’s optimistic growth outlook.

Find out about the key risks to this TD SYNNEX narrative.

Build Your Own TD SYNNEX Narrative

If you see things differently or want to dig into the details yourself, jump in and craft your own perspective in just minutes. Do it your way

A great starting point for your TD SYNNEX research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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