12:42 PM EDT, 06/11/2024 (MT Newswires) -- TD Synnex ( SNX ) is positioned to see accelerated billing growth in fiscal H2, driven by stabilization in PC markets, ramp-up of Hyve business, and demand from artificial intelligence-enabled workloads, among others, RBC Capital Markets said in a note.

TD Synnex ( SNX ) is increasing its focus on high-growth markets like cloud, hyperscale infrastructure, and cybersecurity, which represent incremental market opportunities. The investment firm said this focus is "instrumental" for the company to achieve up to a 7% growth in organic revenue.

The company, however, is expected to feel margin pressure in fiscal Q2 and the back half due to a mix shift, the investment firm noted. This could be offset by potential cost-optimization measures and continued expansion in strategic technology areas.

TD Synnex ( SNX ) is set to release its fiscal Q2 results June 25.

RBC Capital Markets raised its price target for TD Synnex ( SNX ) to $135 from $118 with a sector perform rating.

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