Zacks Investment Research Upgrades SYNNEX (SNX) to Buy

SYNNEX (NYSE:SNX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Thursday. The firm presently has a $90.00 target price on the business services provider’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 7.84% from the company’s previous close.

According to Zacks, “SYNNEX Corporation, a business process services company, provides business-to-business services that help their customers and business partners grow and enhance their customer-engagement strategies. Headquartered in Fremont, CA, and with operations in more than 30 countries, SYNNEX is an industry leader in IT distribution and customer care outsourced services, operating in two business segments: Technology Solutions and Concentrix. SYNNEX brings the most relevant technology solutions to the IT and consumer electronics markets to help their partners sustainably grow their business. With more than 100,000 associates operating in 25 countries and with fluency in over 40 languages, their Concentrix division delivers high-value business services and solutions for the customer-relationship lifecycle to more than 450 clients. SYNNEX is listed on the New York Stock Exchange (NYSE: SNX) and was ranked 198 on the 2017 Fortune 500. “

Several other brokerages also recently weighed in on SNX. SunTrust Banks cut their target price on shares of SYNNEX to $100.00 and set a “buy” rating for the company in a research note on Thursday, October 4th. Stifel Nicolaus cut their target price on shares of SYNNEX from $130.00 to $114.00 and set a “buy” rating for the company in a research note on Thursday, October 4th. Needham & Company LLC raised shares of SYNNEX from a “buy” rating to a “strong-buy” rating and set a $135.00 target price for the company in a research note on Thursday, October 4th. Finally, TheStreet downgraded shares of SYNNEX from a “b-” rating to a “c+” rating in a research note on Friday, October 12th. One analyst has rated the stock with a sell rating, two have assigned a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. SYNNEX currently has a consensus rating of “Buy” and an average target price of $125.57.

Shares of NYSE:SNX traded up $0.46 during midday trading on Thursday, hitting $83.46. 73,737 shares of the stock were exchanged, compared to its average volume of 403,374. The company has a market capitalization of $4.11 billion, a PE ratio of 9.42 and a beta of 0.82. The company has a quick ratio of 0.94, a current ratio of 1.51 and a debt-to-equity ratio of 0.47. SYNNEX has a twelve month low of $71.82 and a twelve month high of $141.94.

SYNNEX (NYSE:SNX) last released its quarterly earnings results on Wednesday, October 3rd. The business services provider reported $2.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.46 by $0.11. SYNNEX had a return on equity of 17.16% and a net margin of 1.41%. The business had revenue of $4.91 billion during the quarter, compared to the consensus estimate of $4.88 billion. During the same quarter in the previous year, the company posted $2.16 EPS. The business’s revenue was up 14.8% on a year-over-year basis. As a group, equities analysts anticipate that SYNNEX will post 10.22 earnings per share for the current year.

In other news, CEO Dennis Polk sold 2,000 shares of the company’s stock in a transaction on Monday, October 1st. The stock was sold at an average price of $84.81, for a total transaction of $169,620.00. Following the completion of the sale, the chief executive officer now directly owns 26,494 shares of the company’s stock, valued at $2,246,956.14. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Marshall Witt sold 600 shares of the company’s stock in a transaction on Monday, October 1st. The shares were sold at an average price of $85.10, for a total value of $51,060.00. Following the sale, the chief financial officer now directly owns 16,610 shares of the company’s stock, valued at $1,413,511. The disclosure for this sale can be found here. Over the last ninety days, insiders acquired 370,331 shares of company stock worth $29,495,099 and sold 6,609 shares worth $534,250. 3.20% of the stock is owned by company insiders.

Institutional investors have recently made changes to their positions in the stock. Marshall Wace LLP bought a new position in shares of SYNNEX during the 3rd quarter worth approximately $7,186,000. Morgan Stanley grew its stake in shares of SYNNEX by 13.0% during the third quarter. Morgan Stanley now owns 126,640 shares of the business services provider’s stock worth $10,726,000 after purchasing an additional 14,531 shares during the period. Nordea Investment Management AB grew its stake in shares of SYNNEX by 6.6% during the third quarter. Nordea Investment Management AB now owns 74,861 shares of the business services provider’s stock worth $6,340,000 after purchasing an additional 4,655 shares during the period. MetLife Investment Advisors LLC grew its stake in shares of SYNNEX by 20.0% during the third quarter. MetLife Investment Advisors LLC now owns 38,714 shares of the business services provider’s stock worth $3,279,000 after purchasing an additional 6,464 shares during the period. Finally, Putnam Investments LLC acquired a new position in SYNNEX in the third quarter valued at about $1,203,000. 57.76% of the stock is owned by hedge funds and other institutional investors.

About SYNNEX

SYNNEX Corporation provides business process services in North and South America, the Asia-Pacific, Europe, and internationally. It operates in two segments, Technology Solutions and Concentrix. The Technology Solutions segment distributes peripherals; information technology systems, including data center server and storage solutions; system components; software; networking/communications/security equipment; consumer electronics; and complementary products.

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