TD Synnex upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded TD Synnex to Outperform from Sector Perform with a price target of $140, up from $135. The analyst says solid growth in advanced solutions driven by data center builds and cloud deployments, Hyve customer ramp, PC refresh cycle, and demand for AI-powered PCs should improve TD Synnex’s billings growth to mid-single-digits in the second half of 2024 with likely further improvement in fiscal 2025. In addition, the company’s margins should expand in 2025 with the ramping up of the Hyve customer and a rebound in networking. RBC believes the stock pullback offers an attractive risk/reward opportunity.