Thursday, January 13, 2011

SYNNEX Corp.'s (NYSE:SNX) Small, Medium Business Demand Exceeds Expectations

Citing better-than-expected demand in the small and medium business sector for SYNNEX Corp. (NYSE:SNX), Goldman Sachs (NYSE:GS) raised their EPS estimates and price target on the company.

Demand in the small and medium business sector accounts for close to 50 percent of overall revenue for SYNNEX.

For full year 2011 and 2012, they boosted their EPS estimates from
$3.60 and $3.95 to $3.70 and $4.10. They initiated a full year 2012 estimate of $4.50.

SYNNEX will also benefit in distribution from their acquisition with Ingram Micro (NYSE:IM), said Goldman, which sees potential of 26 percent upside from it.

Goldman maintains a "Neutral" rating on SYNNEX, which closed Wednesday at $34.28, up $0.54, or 1.60 percent. Goldman raised their price target on SNX from $33.50 to $35.50.

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