Increasing Target on Systemax (NYSE: SYX)

I am increasing my target on Systemax (NYSE: SYX) from $36 to $44. My buy up to price increases to $36.

Estimates for Systemax have been creeping up over the past two quarters. The company is still quirky, with no questions and answers period allowed on quarterly conference calls.

However, the company presented at a KeyBanc conference in late May and the stock reacted with a nice jump. Unfortunately, the transcript from that presentation is not publicly available but the stock certainly got a jolt post the May 31 meeting. I can only suspect that management is giving off positive vibes.

Current estimates now look for $2.05 in fiscal 2019 earnings, up from my prior estimate of $1.80. The new target is based on a 21.5 P/E multiple on that 2019 estimate.

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