Oppenheimer analyst Andrew Uerkwitz maintained a Hold rating on Synaptics Inc (SYNA) today. The company’s shares closed yesterday at $40.86.
Uerkwitz wrote:
“Synaptics reported F2Q19 revenue/EPS of $426M/$1.55, beating our $419M/$1.32E and Street’s $422M/$1.38E. Gross margin expansion accounted for the most positive surprise. We note that SYNA managed to deliver consistent Q/Q gross margin improvement in the past six quarters. Due to well known issues in the handset market March quarters seem a bit weaker than expected, while IoT division still needs more time to recover from a temporary slowdown for smart speaker demand in 2H calendar 2019. Given uncertainties around latter half of CY19, we believe total sales may still decline Y/Y in FY19. On the brighter side, SYNA will likely see a meaningful pick- up of OLED DDIC volume in 2019 alongside further operating leverage from margin expansion and stable opex outlook.”
According to TipRanks.com, Uerkwitz is a 5-star analyst with an average return of 18.7% and a 57.3% success rate. Uerkwitz covers the Consumer Goods sector, focusing on stocks such as Turtle Beach Corp, Universal Display, and Electronic Arts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Synaptics Inc with a $47.60 average price target, implying a 16.5% upside from current levels. In a report released today, J.P. Morgan also downgraded the stock to Hold with a $50 price target.
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The company has a one-year high of $55.25 and a one-year low of $33.54. Currently, Synaptics Inc has an average volume of 560.6K.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SYNA in relation to earlier this year. Last month, 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.
