Needham Thinks Synaptics Inc’s Stock is Going to Recover


In a report released today, Rajvindra Gill from Needham maintained a Buy rating on Synaptics Inc (SYNA), with a price target of $45. The company’s shares closed yesterday at $35.31, close to its 52-week low of $31.65.

Gill wrote:

“Yesterday, DealReporter reported that Dialog was considering a bid to acquire Synaptics. SYNA shares were up ~8% on the news. Dialog attempted to acquire but ultimately the deal was terminated. At the time, SYNA’s stock was $50/share, and we believe the company was looking for an all-cash offer in the $70/range. Today, the story is vastly different. The shares have fallen 30% and are trading at $35/share. The CEO has recently been removed by the the CFO has since left the company. While in the past, we didn’t think a deal with Dialog made sense, however, given the current situation (i.e. new and current share levels, we believe the company would be more willing to accept. Over the past few years, SYNA has diversified away from the mobile phone segment, and now generates 21% of sales from IoT , 15% from from mobile.”

According to TipRanks.com, Gill is a 5-star analyst with an average return of 10.2% and a 54.4% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Smart Global Holdings Inc, and Everspin Technologies Inc.

Synaptics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $43.57.

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The company has a one-year high of $55.25 and a one-year low of $31.65. Currently, Synaptics Inc has an average volume of 582.6K.

Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is neutral on the stock.

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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.

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