Positive Outlook for Synaptics Driven by Strong IoT Growth and Strategic Acquisitions

Analyst Krish Sankar of TD Cowen maintained a Buy rating on Synaptics (SYNA – Research Report), with a price target of $80.00.

Krish Sankar’s rating is based on Synaptics’ recent financial performance and future growth potential. The company reported revenues and earnings per share that slightly exceeded expectations, driven by strong IoT revenue growth. Despite some concerns about potential future demand softness, current consumer demand remains stable, with healthy backlog and order linearity.
Additionally, Synaptics’ guidance for the upcoming quarter also surpassed market expectations, suggesting continued growth. The company’s core IoT segment showed significant year-over-year growth, and the Enterprise & Auto segment, although experiencing some decline, is expected to benefit from PC demand and share gains. Moreover, Synaptics’ acquisition of Broadcom assets is anticipated to positively impact the Mobile segment. These factors contribute to a positive outlook, justifying the Buy rating.

According to TipRanks, Sankar is a 5-star analyst with an average return of 13.3% and a 48.99% success rate. Sankar covers the Technology sector, focusing on stocks such as Apple, Pure Storage, and Cohu.