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Oppenheimer Downgrades Synaptics (SYNA) to Underperform; May Get Worse Before It Gets Better

December 12, 2016 6:26 AM EST
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Price: $97.56 -1.27%

Rating Summary:
    14 Buy, 7 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Oppenheimer downgraded Synaptics (NASDAQ: SYNA) from Perform to Underperform with a price target of $45.00, saying it may get worse before it gets better.

Analyst Andrew Uerkwitz commented, "We are increasingly worried about the risks associated with SYNA on two fronts: lack of fingerprint sensor traction and lasting margin headwind from TDDI. In both cases, market and customer demands are not in favor of SYNA. In fingerprint, an increasing number of competitors and shifting customer preference are costing Synaptics market share. In display, we believe TDDI’s ramp will continue to hurt margins, while growing penetration of OLED display will quicken SYNA’s DDIC decline before its own OLED DDIC becomes available. We adjust our model and multiple to account for the risks. We continue to believe FY17 will be a transition year which is moving us further away from the Street. We introduce a price target of $45 and lower our rating to Underperform from Perform."

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 $56.38 yesterday.



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Andrew Uerkwitz