TD Synnex (SNX) is well-positioned to deal with rising prices and supply chain challenges with its key competitive advantages such as its global reach and specialized go-to-market strategy, RBC Capital Markets said in a note emailed Wednesday.

The company's Hyve subsidiary has diversified its customer base and offerings, helping TD Synnex to grow into the booming AI and data center infrastructure markets, RBC analysts said.

Higher average selling prices and tougher year-over-year comparisons could slow PC demand in H2, but the analysts said they expect sustained momentum from a higher proportion of business-to-business customers, rising AI PC penetration, and ongoing PC refresh activity. The company also saw no major demand drop in Q1 and expects Q2 growth to continue steadily, the analysts added.

TD Synnex posted a Q1 earnings beat and its Q2 guidance surpassed consensus, with growth driven by demand across distribution and Hyve, according to the note.

RBC maintained the company's stock rating at outperform and raised the price target to $210 from $180.

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