Needham analyst Rajvindra Gill maintained a Buy rating on Synaptics Inc (NASDAQ: SYNA) today and set a price target of $58. The company’s shares closed yesterday at $48.17.
Gill commented:
“We maintain our Buy on SYNA and raise our PT to $58 (vs. $52) on a higher gross margin profile in FY19 and lower tax rate. We expect a favorable mix shift will drive margins higher over time (possibly 40% in the medium-term). IoT will account for a greater % of sales (today its 25%) and the company should benefit from higher ASPs across its portfolio. In the near-term, the TDDI supply constraints limited the upside in the Sept. qrt. We bake in $50MM headwind for FY19. However, the TDDI lead times are around 3-months and we believe SYNA has good visibility into the amount for capacity coming online and we expect a good Dec. qrt.”
According to TipRanks.com, Gill is a top 100 analyst with an average return of 20.8% and a 68.1% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Smart Global Holdings Inc, Everspin Technologies Inc, and Adesto Technologies Corp.
Synaptics Inc has an analyst consensus of Strong Buy, with a price target consensus of $54.40, representing a 12.9% upside. In a report issued on August 1, Craig-Hallum also upgraded the stock to Buy with a $51 price target.
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Based on Synaptics Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $1.5 million. In comparison, last year the company had a net profit of $17.8 million.
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Synaptics, Inc. engages in the development, marketing, and sale of semiconductor products. It develops and supplies custom-designed human interface solutions that enable people to interact with mobile computing, communications, entertainment, and other electronic devices.
