Buy Synaptics (SYNA) on Weakness Related to Apple Speculation, Needham & Company Says

Needham & Company analyst Rajvindra Gill reiterated a Strong Buy rating and $110 price target on Synaptics (NASDAQ: SYNA) telling client to buy on weakness related to Apple speculation.

Gill commented, "On Friday, Digitimes cited speculation that AAPL has approached other display driver IC suppliers in order to reduce its reliance on SYNA. Our counterpoints are cited below. Investor sentiment seems to have turned excessively negative due in our view to an overreaction to confusion surrounding the RSP acquisition. We find it highly unlikely that SYNA would have acquired RSP without visibility into Apple’s business next year, as we estimate AAPL represents 40-50% of RSP's total sales. Furthermore, we continue to view the RSP acquisition as a positive, and we agree with the long-term strategy of providing higher dollar content per unit. We've included recently issued RSP financials in this report. We would be buyers on weakness and we maintain our Strong Buy and $110 PT."

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 $63.66 yesterday.

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