Synaptics (SYNA) PT Raised to $150 at Needham & Company

Needham & Company analyst Rajvindra Gill raised the price target on Synaptics (NASDAQ: SYNA) to $150.00 (from $130.00) following a strong beat and raise quarter driven by record IoT sales, sustained PC growth and OLED traction with Apple and the major Chinese OEMs. Importantly, the gross margin guidance of 52.5% at midpoint was 340bps over the Street due to favorable mix shift. SYNA is starting the year with a strong backlog across all business, hampered only by supply constraints that are plaguing the semi industry.

The analyst reiterated the Buy rating, stating "Looking beyond the near-term, the bright spot on the call was undoubtedly the company's new long-term targets (3+ years): 8-10% sales growth, 57% GM and 30% OM. Our back of the envelope calculation yields $1.6-1.7BN of revenue and $11-$12 of EPS making the SYNA a compelling long-term holding. Our new $150 PT is based P/E 15.6x on our new FY23 estimates. Synaptics remains our top pick for the year".

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