In a report released today, Nick Doyle from Needham maintained a Buy rating on Synaptics, with a price target of $85.00.
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Nick Doyle has given his Buy rating due to a combination of factors that highlight Synaptics’ potential for growth in the coming years. One of the primary reasons is the company’s recent launch of the next-generation Astra Edge AI processors, which are expected to significantly drive growth in their Core IoT segment by fiscal year 2027. This new product line is anticipated to contribute to a 15.6% year-over-year increase, with the possibility of exceeding expectations if the adoption rate is quicker or larger than initially projected.
Additionally, Synaptics is experiencing a steady recovery in demand for PCs and docking stations, although a significant surge from PC or Enterprise upgrades has not yet occurred. Management anticipates a potential refresh cycle opportunity in calendar year 2026. Furthermore, the company has secured notable design wins for its new touch controller with a leading Android OEM, with initial revenue expected soon. These strategic developments underpin the Buy rating, supported by a price target of $85, which is based on a projected earnings per share of $5.45 in calendar year 2027.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $90.00 price target.