Needham & Company Upgrades Synaptics (SYNA) to Buy; Gaining Market Share at a Compelling Valuation

Needham & Company upgraded Synaptics (NASDAQ: SYNA) from Hold to Buy with a price target of $41.00.

Needham analyst says, "SYNA’s results/guidance were solid in light of a tough macroenvironment. Relative to its direct touch competitors, SYNA is gaining share in the handset space and we see strong momentum in the tablet market. We believe SYNA has an early lead with in-cell touch implementation (i.e. touch controller embedded in the LCD screen). We contend in-cell could be the predominant touch interface in the future given the significant BOM savings for the handset OEMs. On the NB front, SYNA will stand to benefit if there is an upgrade cycle to Windows 8 Ultrabooks given. Moreover, we see incremental dollar content per NB (sub-$6) with the proliferation of touch-enabled NBs. Currently trading at 10.4x ex-cash, SYNA is cheaper compared to CY and ATML, each trading at a 33% and 15% premium to SYNA, respectively."

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 $34.34 yesterday.

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