Synaptics (SYNA) Top Rating Reiterated at Needham & Company Follwing Analyst Day

Needham & Company analyst Rajvindra Gill reiterated a Strong Buy rating and $110 price target on Synaptics (NASDAQ: SYNA) after the company's analyst day, which, according to the analyst reinforced the compelling value proposition of the RSP acquisition.

Gill commented, "Yesterday, we attended SYNA's analyst day at its headquarters in San Jose, CA. We remain optimistic that the RSP acquisition can transform SYNA into a platform company whereby it dominates all the chips on the display motherboard (i.e., touch, fingerprint, display driver IC). SYNA expects to have its own internal TDDI solution in production this year, with a jointly developed product with RSP in CY15, addressing the China market. Fingerprint adoption is expected to accelerate, driven by mobile payments and passwordless applications. SYNA also reiterated its target model, translating into a base case of Non-GAAP EPS $6.50-7.00 in FY16. With the shares trading at 9x P/E FY16E, we believe the market is overly discounting the value of the RSP acquisition."

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 $61.92 yesterday.

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