Synaptics (SYNA) PT Raised to $65 at Needham & Company

Needham & Company analyst Rajvindra Gill raised the price target on Synaptics (NASDAQ: SYNA) to $65.00 (from $42.00) while maintaining a Buy rating following 'beat and raise' results.

The analyst commented, "We are increasing our PT to $65 following a significant beat and raise. Dec qrt. EPS guidance of $1.45, is $0.60 higher than our est. In the Sep. qrt., revenue, gross margin and lower OPEX all drove the upside. We believe SYNA took a conservative view on Huawei heading into the print and benefited from higher shipments throughout the qrt. Importantly, NG GM guidance of 41.5% was 150bps higher than our est. We view SYNA's results as a clear indication that its strategic transformation initiatives are working, as it has significantly improved its top-line performance, margin, and profitability. With a new CEO and CFO, we expect SYNA to remain focused on its strategic initiatives as it focuses on the higher-margin and less volatile IoT space and further diversifies its customer base. Our new $65 PT implies a 1.7x EV/sales mult. on our new FY21 est."

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