TD Synnex rises as UBS upgrades on improving outlook, Apollo overhang removal

TD Synnex

16/04/2024 16:40

** TD Synnex Corp's  SNX.N  shares up 2.1% at $114.09,
snapping 6-session losing streak on Tues, after UBS upgrades IT
solutions firm to "buy" from "neutral"
    ** UBS hikes PT by $30 to $145, implying ~30% upside to
stock's last close
    ** Rev to grow 6% in FY24 and FY25, which is not priced in
by the market, UBS said in note to clients
    ** Upgrade underpinned by IT/ AI demand coupled with capital
allocation strategy that at minimum returns 50% of cash flow to
shareholders via both dividends and buybacks, UBS said
    ** Brokerage expects SNX shares to re-rate higher after
removal of Apollo share overhang
    ** Apollo Global Management  APO.N  earlier this month
offloaded its remaining ~6% stake in secondary offering priced
at $115
    ** Avg rating among 13 analysts covering SNX is "buy" and
their median PT is $135, per LSEG data
    ** Including move on the session, shares up ~20% over the
past year

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))