Synaptics Inc Gets a Sell Rating from Oppenheimer

By Jason Carr

In a report released today, Andrew Uerkwitz from Oppenheimer reiterated a Sell rating on Synaptics Inc (NASDAQ: SYNA), with a price target of $48. The company’s shares closed yesterday at $58.79.

Uerkwitz observed:

“Monday (6/12) post close, SYNA announced acquisitions of Conexant for $300M cash and 726,666 SYNA shares, and the Multimedia Solutions Business of Marvell Technology for $95M cash. The two targets allow SYNA to access a variety of voice and video processing solutions and cast a bigger role as the interface provider for consumer IoT devices. Management expects the deals to close in C3Q17 and be accretive to gross margin and earnings within one year on a non-GAAP basis. SYNA also announced a slight reduction in its F4Q17 revenue guidance ($5M lower than previous mid-point) due to inventory correction in China. We lower our FY17 estimates to reflect the updated guidance.”

According to TipRanks.com, Uerkwitz is a 4-star analyst with an average return of 7.3% and a 53.4% success rate. Uerkwitz covers the Technology sector, focusing on stocks such as Activision Blizzard, Tower Semiconductor, and Himax Technologies.

Synaptics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $64.50.

Based on Synaptics Inc’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $444 million and quarterly net profit of $4.5 million. In comparison, last year the company earned revenue of $403 million and had a net profit of $20.5 million.

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Synaptics, Inc. is engaged in developing and supplying of custom-designed human interface solutions that enable people to interact with mobile computing, communications, entertainment and other electronic devices. The company currently targets the personal computer market, primarily notebook computers, including ultra books; the markets for digital lifestyle products, including mobile smart phones and feature phones, the tablet market and other select electronic device markets with its customized human interface solutions. Synaptics was founded by Federico Faggin and Carver A. Mead in March 1986 and is headquartered in San Jose, CA.