TD Synnex benefiting from improving IT spending, says Loop Capital

Loop Capital analyst Ananda Baruah keeps a Buy rating and $150 price target on TD Synnex while noting that the company’s recent Q3 earnings beat and better than expected billings growth suggests that it is benefiting from signs of improving IT spending. PCs returned to growth across all regions, though at a more muted pace than expected as customers await more options in the mid-range AI PC category, the analyst tells investors in a research note. Growth in Europe, Asia pacific and Japan also outpaced North America, but the latter remains the more profitable region and is expected to be a key driver of margin improvement once growth picks up, the firm added.