Needham & Company Adjusting Estimates on Synaptics (SYNA); Near-Term Risks, But Long-Term Sound

Needham & Company reiterates a 'Buy' on Synaptics (NASDAQ: SYNA) price target of $41.00.

Analyst, Rajvindra S. Gill, said, "We think SYNA is tracking to the low-end of its C1Q guidance of $128-$136MM and we believe 2Q consensus estimates of 13% sequential growth appear high...We believe SYNA’s touchpad shipments could be adversely affected by a temporary slowdown as notebook ODMs pause before Window 8 and Intel’s new Ivy-bridge processor. We also think SYNA has exposure to RIM (Nasdaq: RIMM), which is going through a difficult inventory. We would look to enter the stock post-earnings once we get a better handle on the current PC environment."

"We are lowering our F3Q12 (March) and F4Q12 (June) estimates to $128.0MM/$0.47 (vs. $132.0MM/$0.52) and $134.1MM/$0.51 (vs. $140.9MM/$0.59), respectively. Our FY2012 and FY2013 estimates move to $541.0MM/$2.23 (vs. $551.8/$2.35) and $595.0MM/$2.60 (vs. $610.0MM/$2.75), 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 $33.10 yesterday.

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