UPDATE: Stifel Raises Price Target On SYNNEX On Solid Beat And Raise

In a report published Tuesday, Stifel analyst Matthew Sheerin reiterated a Buy rating on SYNNEX Corporation (NYSE: SNX), and raised the price target from $71.00 to $80.00.

In the report, Stifel noted, “SNX reported November-quarter (4QFY14) revenue and EPS of $3.82bn and $1.83, well above our $3.72bn/$1.69 estimate. The upside came from continued strong growth in the core IT distribution business (Tech Solutions), which grew 16% y/y mainly on strength from N. America. By market, SMB, consumer electronics, federal govt., networking, and security saw healthy demand, as well as continued albeit slower corporate PC refresh. The services segment (Concentrix) reported revenue of $342mn, in line with expectations, and EBIT margin of 8.5%, slightly better than expected. Feb-quarter topline guidance of $3.42bn at midpoint was about $50mn below our estimate, due to more pronounced seasonality (strong consumer and federal sales in the Nov. Q) as well as slower growth in Canada and Japan (20-25% of Tech Solutions sales). SNX still expects good growth in the U.S., in part due to ramping Dell and Lenovo X86 server businesses. In addition, we also expect continued strength from the cloud-server assembly business (Hyve Solutions). We are modestly cutting FY15 revenue on the FX headwinds but raise our EPS estimate from $6.65 to $6.86 on better margins. We also establish FY16 revenue and EPS of $15.3bn and $7.40. We raise our 12-month PT to $80 from $71.”

SYNNEX closed on Monday at $70.97.