SNX - TD Synnex: Gusher Of Cash $2B Buyback Authorized Buy Still Justified
2024-06-18 14:48:36 ET
Summary
- TD SYNNEX Corporation offers long-term value potential and could trade fairly at $180 per share by FY'26E.
- The company's strong cash flow generation, capital productivity, and shareholder-friendly moves support its undervaluation and growth prospects.
- This includes a $2 billion recently authorized buyback, and a 50% payout ratio of FCF.
Investment Summary
TD SYNNEX Corporation ( SNX ) continues to offer long-term compelling value and could potentially trade above $180 per share by FY'26E in my best estimation (37% cumulative return, 13.5% CAGR). This is supported in the provable facts pattern by 1) the company's fundamental outlook [including the 50% payout ratio of FCF in dividends + buybacks], 2) attractive business economics [deploying incremental capital to an advantage], 3) compressed multiples, and 4) potential undervaluation where the stock trades today....
TD Synnex: Gusher Of Cash, $2B Buyback Authorized, Buy Still Justified