In a report issued on February 8, Jun Zhang from Rosenblatt Securities maintained a Hold rating on Synaptics Inc (SYNA). The company’s shares closed on Friday at $41.78.
Zhang wrote:
“We maintain our cautious view on SYNA as we believe the shortage in the TDDI market is lifting and see increasing competition in the TDDI market as a major headwind over the next few quarters. In addition, we believe TDDI prices will face challenges as Taiwanese suppliers ramp their capacity. We maintain our Neutral rating and lower our 12-month price target from $55 to $40. Management commented that they are seeing near-term weakness in the broader consumer IoT market, driven by weakness in demand for smartphones and smart speakers, that will persist in the March quarter. We see the IoT business facing challenges from Apple (AAPL: Neutral) HomePod weakness, as well as increasing competition from MediaTek (2454.TW: NR). In addition, we believe Synaptics missed the best entry point into the under-display finger print sensor market.”
According to TipRanks.com, Zhang is a 2-star analyst with an average return of 0.8% and a 55.7% success rate. Zhang covers the Consumer Goods sector, focusing on stocks such as Lumentum Holdings, Viavi Solutions, and NeoPhotonics.
Currently, the analyst consensus on Synaptics Inc is a Moderate Buy with an average price target of $48, which is a 14.9% upside from current levels. In a report issued on February 8, J.P. Morgan also downgraded the stock to Hold with a $50 price target.
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Based on Synaptics Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $12.8 million. In comparison, last year the company had a GAAP net loss of $82.4 million.
Based on the recent corporate insider activity of 56 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.
