Shares of technology distributor Synnex are under scrutiny following a price target reduction by Morgan Stanley. The financial institution adjusted its outlook downward to $177 from $181, a move that comes just weeks before the company is scheduled to release its next quarterly financial results.
Market Eyes January Report Amid Revised Targets
Investor focus is now squarely on the upcoming report dated January 8, 2026, which will provide the full-year and fourth-quarter results for fiscal 2025. This update is anticipated to offer confirmation of the Q4 earnings per share forecast, previously guided to be in the range of $3.45 to $3.95. The timing of Morgan Stanley’s adjustment underscores a prevailing sense of caution in the market regarding near-term performance in the IT hardware sector.
This recent target cut follows a similar action by Zacks Research, which downgraded its rating on December 17. Currently, Synnex stock trades at approximately $150.81. This price creates a notable gap to the average consensus price target of about $169.18, a level that corresponds with a “Moderate Buy” recommendation.
Should investors sell immediately? Or is it worth buying Synnex?
Key Data Points:
* Revised Price Target: Morgan Stanley: $177 (down from $181).
* Earnings Date: Full-year and Q4 FY2025 results on January 8, 2026.
* Valuation Metric: The current Price-to-Earnings (P/E) ratio stands at 16.36.
* Earnings Forecast: Analysts project EPS of $11.88 for the current fiscal year.
Technical and Strategic Crosscurrents
From a chart perspective, the equity appears to be consolidating. The 50-day moving average sits at $152.82, while the 200-day average is at $146.75. This positioning suggests the shares are struggling to maintain their shorter-term upward momentum.
While the company has highlighted its long-term strategic focus through a recently introduced AI strategy for partners, immediate market sentiment continues to be shaped by broader economic concerns within the hardware industry. Morgan Stanley’s lowered target reinforces the view that institutional investors are balancing the long-term potential of AI initiatives against present sector headwinds. Market volatility is expected to remain elevated leading up to the January 8 earnings release.
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