Needham analyst Rajvindra Gill maintained a Buy rating on Synaptics Inc (SYNA) today and set a price target of $45. The company’s shares opened today at $33.46, close to its 52-week low of $33.32.
Gill noted:
“After the market closed last Friday, Synaptics announced the immediate departure of CEO Richard Bergman. We believe the BOD felt Mr. Bergman had not created shareholder value during his tenure. In its announcement, SYNA also lowered its outlook for the fiscal third quarter. With the stock down 22%, we believe the shares are discounting the CEO departure and the lowered outlook. We believe a new CEO could represent a catalyst for the shares. We would expect the new CEO to be focused on growing profitability and future investments and be open to a potential sale of the company (in the past, SYNA has rejected prior offers from Dialog and Chinese- state owned entity in 2014). Even with reduced outlook, we see $4+ of earnings and gross margins in 38% range, providing a potential bottom for the shares.”
According to TipRanks.com, Gill is a 5-star analyst with an average return of 11.4% and a 57.3% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Everspin Technologies Inc, and Smart Global Holdings Inc.
Currently, the analyst consensus on Synaptics Inc is a Moderate Buy with an average price target of $44.57.
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Synaptics Inc’s market cap is currently $1.48B and has a P/E ratio of 1445.82. The company has a Price to Book ratio of 2.11.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is neutral on the stock. Most recently, in January 2019, Francis Lee, a Director at SYNA bought 6,000 shares for a total of $138,960.
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Synaptics, Inc. engages in the development, marketing, and sale of human interface semiconductor solutions for electronic devices and products. It specializes in custom-designed human interface that enable people to interact with mobile computing, communications, entertainment, and other electronic devices.
