12:13 PM EDT, 09/11/2024 (MT Newswires) -- TD SYNNEX's ( SNX ) billing growth should hit 5% in Q3 due to strong demand from hyperscalers and sustained demand for commercial personal computers, RBC Capital Markets said in a note emailed Wednesday.

The investment firm expects TD gross billings of around $19.5 billion in Q3, slightly higher than the consensus estimate of $19.4 billion and in line with the company's midpoint guidance.

However, margin pressures from the company's subsidiary Hyve's second-largest customer ramping up, weakness in networking, and mix shift to Endpoint Solutions are likely to impact margins in H2 of 2024, with an anticipated margin improvement in fiscal year 2025, RBC said.

RBC expects the company's revenue to reach nearly $14.1 billion and adjusted earnings to be $2.80 per share in Q3.

RBC has an outperform rating on TD with a price target of $140.

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