Synaptic Incorporated (NASDAQ: SYNA) is known for developing human interface solutions for consumer electronic companies such as Apple (NASDAQ: AAPL) and Samsumg. Shares of Synaptics fell significantly on Friday, January 2nd after Pacific Crest analyst John Vinh downgraded the stock from Outperform to Sector Perform, citing that the company had probably lost the touch controller socket contract on the upcoming Samsung Galaxy S6.
The analyst sees “limited catalysts” for the company “given share loss and execution risks on fingerprint sensing” in addition to increased competition. He noted, “Based on supply chain conversations, we believe SYNA has likely lost the touch controller socket on the upcoming Galaxy S6 (GS6) to STM,” the analysts wrote. “We believe SYNA’s latest-generation touch controller was highly competitive, but that STM was “good enough” and was able to win on pricing with ASPs of $1+.”
The analyst has rated Synaptics 14 times since July 2009, earning a 56% success rate recommending the stock and a +22.8% average return per recommendation.
Over the past year, Vinh has successfully made 21 general ratings out of 53 total, earning a 40% success rate recommending stocks and a +0.6% average return per recommendation.
On the other hand, Stifel Nicolaus analyst Kevin Cassidy saw the stock’s pullback as a good buying opportunity, maintaining a Buy rating on Synaptics with an $87 price target on January 2nd.
Cassidy was under the impression that rumors about the potential contract loss between Synaptics and Samsung had already been priced into the shares. In addition, the analyst is “not convinced” Samsung has made a final decision on cutting ties with Synaptics and believes the they will go forward using the company’s technology in future smartphones.
Cassidy has rated Synaptics 10 times since April 2013, earning a 70% success rate recommending the stock and a +38.7% average return per recommendation.
Cassidy has successfully made 71 general ratings out of 90 total over the past year, earning a 79% success rate recommending stocks and a +33.9% average return per recommendation.
On average, the top analyst consensus for Synaptics Incorporated on TipRanks is Moderate Buy.