TD SYNNEX (SNX) just reported its revenues grew 7% over the past year, coming in ahead of forecasts and setting new records for both billings and earnings. The company also unveiled a new global FinOps Practice powered by IBM Cloudability, signaling a strategic push in cloud financial management.

TD SYNNEX's recent momentum has caught the market’s attention, helped along by positive news: leadership changes, new distribution partnerships, and the high-profile launch of its global FinOps Practice. After a year where total shareholder return reached nearly 29%, and with a robust 32% share price increase year to date, it is clear investor confidence has been steadily building for both the business’s execution and outlook.

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With TD SYNNEX’s share price up more than 30% this year and revenue momentum ahead of expectations, investors now face a critical question: is there more upside potential, or has future growth already been fully priced in?

Most Popular Narrative: 14% Undervalued

According to the most popular narrative, TD SYNNEX closed at $153.42, notably below a fair value assessment of $178.36. The narrative focuses on optimism about resilient growth drivers and significant room for price appreciation based on future earnings.

The continued enterprise-wide digital transformation and AI adoption, highlighted by double-digit growth in software (especially in cloud, cybersecurity, virtualization, and infrastructure software), is expanding TD SYNNEX's addressable market and generating higher recurring revenue streams, which are expected to support consistent revenue and margin expansion.

What is fueling this bullish fair value? The narrative is based on projections of strong recurring revenues, structural margin improvements, and a profit trajectory that stands out within the industry. Interested in the bold financial benchmarks behind this confident outlook? Explore the full narrative to uncover the key numbers and assumptions driving this valuation.

Result: Fair Value of $178.36 (UNDERVALUED)

However, ongoing margin pressures and uncertainty from customer concentration could undermine the bullish outlook if trends reverse or if key accounts weaken.

Build Your Own TD SYNNEX Narrative

If you'd like to dig deeper into the numbers and form your own view, it only takes a few minutes to build your personalized story. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding TD SYNNEX.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.