Susquehanna analyst Christopher Rolland reiterated a Buy rating on Synaptics (SYNA – Research Report) today and set a price target of $95.00.
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Christopher Rolland has given his Buy rating due to a combination of factors that highlight Synaptics’ strengths and growth potential. The company’s Core IoT segment has shown impressive results, with continued strength in wireless and processors. Synaptics’ introduction of Wi-Fi 7 devices for IoT applications and the launch of a broad market device have expanded its addressable market significantly. Additionally, the company’s partnership with Broadcom is expected to contribute positively to revenue, especially with the potential growth in Android smartphones and consumer audio markets.
Despite some challenges in the automotive sector, Synaptics has seen positive trends in other areas, such as the PC market, where it anticipates growth due to higher content and share gains. The User Presence Detection segment is also performing well, with strong customer engagement. Furthermore, the Android market is experiencing momentum, aided by subsidies and a shift towards premium phones. Overall, Synaptics’ healthy backlogs, bookings, and lean channel inventory, along with its strategic initiatives, support the positive outlook and justify the Buy rating.
Rolland covers the Technology sector, focusing on stocks such as Nvidia, ON Semiconductor, and Knowles. According to TipRanks, Rolland has an average return of 13.8% and a 51.00% success rate on recommended stocks.
In another report released today, Needham also initiated coverage with a Buy rating on the stock with a $80.00 price target.