Why Did Oppenheimer Upgrade Synaptics Inc’s Stock?

By Ryan Adsit

In a report released today, Andrew Uerkwitz from Oppenheimer upgraded Synaptics Inc (NASDAQ: SYNA) to Hold. The company’s shares closed yesterday at $36.23, close to its 52-week low of $33.73.

Uerkwitz observed:

“We are upgrading Synaptics to Perform from Underperform as we believe near- term downside is limited. We maintain a fundamental negative view of SYNA’s market position and mobile opportunities but recognize solid execution can offset those temporary headwinds. Moreover, negative catalysts like share loss at Samsung (fingerprint) and Apple (DDIC) are well understood. We believe at the analyst day (Dec.12) management will spend most of the time discussing new opportunities in IoT. Although we see the potential for further reduction in FY19 consensus revenue estimates, we believe the market has already priced in the majority of the downside. With that being several quarters away, we step to the sidelines and remove our $35 PT. We will watch how the company executes on the new initiatives.”

According to TipRanks.com, Uerkwitz is a 4-star analyst with an average return of 9.7% and a 56.3% success rate. Uerkwitz covers the Consumer Goods sector, focusing on stocks such as Ribbon Communications Inc, Axon Enterprise Inc, and Tower Semiconductor.

Synaptics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $48.33.

Synaptics Inc’s market cap is currently $1.22B and has a P/E ratio of 73.94. The company has a book value ratio of 1.6388.

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Synaptics, Inc. engages in the development and supply of custom-designed human interface solutions that enable people to interact with mobile computing, communications, entertainment, and other electronic devices. Its solutions are designed for smartphones, tablets, personal computer, products, primarily notebook computers, and other select electronic devices, including devices in automobiles. The company was founded by Federico Faggin and Carver A. Mead in March 1986 and is headquartered in San Jose, CA.