Key insights
- Goldman Sachs raised its price target for TD Synnex (SNX) to $300, citing strong demand for data center hardware, including AI buildouts and traditional servers. The firm increased earnings estimates due to robust enterprise and hyperscaler demand, particularly through SNX's Hyve business. SNX's pricing model and capital-light operations position it well in the evolving IT spending landscape. This positive outlook on a key technology distributor suggests continued strength in the data center hardware supply chain.
Investing.com - Goldman Sachs raised its price target on TD Synnex stock (NYSE:SNX) to $300 from $270 while maintaining a Buy rating on the shares. The stock currently trades at $277.09 with a P/E ratio of 23.03 and an attractive PEG ratio of 0.44, suggesting the shares are trading at a low price relative to near-term earnings growth, according to InvestingPro analysis.
The firm expects TD Synnex to see billings and earnings per share growth from broad-based data center hardware demand, particularly in traditional servers. Growth is driven by higher average selling prices as vendors pass through elevated input costs and expanding demand from aged infrastructure refresh and new AI buildouts across customer verticals.
Goldman Sachs raised its fiscal second quarter 2026 and full year 2026, 2027, and 2028 estimates based on higher Advanced Solutions distribution expectations from enterprise demand. The firm also cited greater momentum in Hyve’s original design manufacturer, contract manufacturer, and supply chain services business from robust hyperscaler demand.
The firm views TD Synnex as well positioned to navigate the evolving enterprise IT spending environment due to its pass-through pricing model. The company also benefits from a highly variable and capital light operating model.
TD Synnex has exposure to hyperscale capital expenditure spending through its Hyve business, according to Goldman Sachs. The stock has delivered a remarkable 114% return over the past year and is trading near its 52-week high of $286.25. For deeper insights into SNX’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro alongside 14 additional ProTips.
In other recent news, TD Synnex has been the subject of several analyst upgrades, primarily due to growth in its Hyve program. RBC Capital raised its price target for TD Synnex to $315, citing Hyve as an underappreciated asset with potential upside catalysts. UBS also increased its price target to $265, highlighting a broadening Hyve program and a strong customer base. Similarly, BofA Securities raised its price target to $270, noting Hyve’s strong growth and higher margins. In addition to analyst upgrades, TD Synnex announced a partnership with Aura Business to distribute a BYOD security solution through its North American partner network. This collaboration will enable managed service providers to access Aura Business solutions via TD Synnex’s marketplace. RBC Capital further expressed confidence in TD Synnex’s growth by raising its price target to $210, citing a first-quarter beat and second-quarter guidance above estimates. These developments reflect the ongoing positive sentiment surrounding TD Synnex’s strategic initiatives and partnerships.
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