UPDATE: Northland Capital Markets Starts Synaptics (SYNA) at Outperform

(Updated - March 10, 2015 8:30 AM EDT)

Northland Capital Markets initiated coverage on Synaptics (NASDAQ: SYNA) with an Outperform rating and a price target of $110.00. Analyst Tom Sepenzis thinks the company is well positioned, and he pointed to expansion in new markets.

"We are initiating coverage of SYNA with an Outperform rating and $110.00 target price, which reflects a forward P/E multiple of 16X our FY16 EPS estimate of $6.85, in line with the handset semiconductor group average. Despite the significant run the stock has experienced in the beginning of the year, we believe there is ample opportunity for upside to our current model, and believe SYNA is well positioned to deliver superior results for the foreseeable future," said Sepenzis.

"SYNA is the leading provider of touch panels for the mobile and computing markets, and is expanding into new markets including biometrics and the integration of display drivers and touch panels over the next few years. This will put SYNA beyond the reach of many of its competitors, driving both top and bottom line growth," added the analyst.

Expanding on biometrics, Sepenzis said, "While this segment is just getting started, Synaptics is off to an early lead with significant wins at Samsung. Apple will drive Android and likely Windows adoption of fingerprint sensors with the introduction of Apple Pay late last year. While Apple uses its own solution, other OEM’s will scramble for a fingerprint solution to compete. While there will be several competitors in this market including QCOM, SYNA has a significant lead in terms of product availability and technology development and we expect it will command significant market share in biometrics."

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 $80.17 yesterday.

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