Needham & Company Maintains a 'Hold' on Synaptics (SYNA); Lowering Estimates on Softening Consumer Notebooks and Mixed Handsets
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Price: $41.23 +1.03%
Rating Summary:
9 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 16 | New: 29
Rating Summary:
9 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 16 | New: 29
Trade SYNA Now!
Needham & Company maintains a 'Hold' on Synaptics (NASDAQ: SYNA).
Needham analyst says, "We are lowering our estimates on Synaptics based on softening demand in consumer notebooks and mixed handset sales. SYNA derives 51% of its overall sales from the notebook market, of which the majority is sold to the consumer segment. Recent negative data points from Intel, Taiwanese ODMs and supply-chain participants indicate a material deterioration in end demand in notebooks spanning until 2Q12. On the handset side, we expect mixed results. Given SYNA’s strong relationships with ZTE & Huawei (both N/R), SYNA is benefiting from the proliferation of Android-based China smartphones. However, we think this strength is being offset by weakness at other accounts, including Nokia (NYSE: NOK), RIMM (Nasdaq: RIMM), LG (N/R) & HTC (N/R). While we believe SYNA has done a good job in transforming its business model, we see near-term risks to SYNA’s core business segments."
"We are lowering our near-term estimates for F2Q12 (Dec) and F3Q12 (Mar) to $130.0MM/$0.52 (vs. $145.0MM/$0.68) and $125.0MM/$0.42 (vs. $135.0MM/$0.53), respectively. Our FY12 and FY13 estimates moves to $522.4MM/$2.00 (vs. $565.1MM/$2.47) and $595.0MM/$2.50 (vs. $605.0MM/$2.60), respectively."
For an analyst ratings summary and ratings history on Synaptics click here. For more ratings news on Synaptics click here.
Shares of Synaptics closed at $30.61 yesterday, with a 52 week range of $21.97-$34.94.
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Needham analyst says, "We are lowering our estimates on Synaptics based on softening demand in consumer notebooks and mixed handset sales. SYNA derives 51% of its overall sales from the notebook market, of which the majority is sold to the consumer segment. Recent negative data points from Intel, Taiwanese ODMs and supply-chain participants indicate a material deterioration in end demand in notebooks spanning until 2Q12. On the handset side, we expect mixed results. Given SYNA’s strong relationships with ZTE & Huawei (both N/R), SYNA is benefiting from the proliferation of Android-based China smartphones. However, we think this strength is being offset by weakness at other accounts, including Nokia (NYSE: NOK), RIMM (Nasdaq: RIMM), LG (N/R) & HTC (N/R). While we believe SYNA has done a good job in transforming its business model, we see near-term risks to SYNA’s core business segments."
"We are lowering our near-term estimates for F2Q12 (Dec) and F3Q12 (Mar) to $130.0MM/$0.52 (vs. $145.0MM/$0.68) and $125.0MM/$0.42 (vs. $135.0MM/$0.53), respectively. Our FY12 and FY13 estimates moves to $522.4MM/$2.00 (vs. $565.1MM/$2.47) and $595.0MM/$2.50 (vs. $605.0MM/$2.60), respectively."
For an analyst ratings summary and ratings history on Synaptics click here. For more ratings news on Synaptics click here.
Shares of Synaptics closed at $30.61 yesterday, with a 52 week range of $21.97-$34.94.
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