GARP Research maintains a 'Buy' on Synaptics (SYNA); Transition From Modules to Chips Largely Complete
Tweet
Share
E-mailGet Alerts SYNA Hot Sheet
Price: $103.27 -6.61%
Rating Summary:
10 Buy, 13 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 12 | New: 26
Rating Summary:
10 Buy, 13 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 12 | New: 26
Join SI Premium – FREE
GARP Research maintains a 'Buy' on Synaptics (NASDAQ: SYNA).
Analyst, Diron Tappin, said, "Synaptics’ sales declined as the transition from modules to chips continued. However, this is largely complete, and the chip business within mobile is growing rapidly. We expect this to continue with the debut of on-cell and in-cell solutions. Despite a stagnant PC market and increasing competition within the mobile business, we believe the firm can push top-line expansion by 20% annually and nearly double earnings within the next three years, driven largely by three trends. First, unit growth in important end markets (smart phones and tablets) continues expanding at a strong double-digit pace. Second, ASP compression from a transition from modules to chips is largely over. Lastly, we expect the company to begin taking back share lost over the past few years when it begins shipping its industry leading on and in-cell solutions in the next two quarters. In the meantime, the company boasts more than $9 of net cash per share. When this excluded from the price, shares trade at just 9x our FY14 earnings, making it a very compelling blend of value and growth, in our opinion."
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 $30.99 yesterday.
Analyst, Diron Tappin, said, "Synaptics’ sales declined as the transition from modules to chips continued. However, this is largely complete, and the chip business within mobile is growing rapidly. We expect this to continue with the debut of on-cell and in-cell solutions. Despite a stagnant PC market and increasing competition within the mobile business, we believe the firm can push top-line expansion by 20% annually and nearly double earnings within the next three years, driven largely by three trends. First, unit growth in important end markets (smart phones and tablets) continues expanding at a strong double-digit pace. Second, ASP compression from a transition from modules to chips is largely over. Lastly, we expect the company to begin taking back share lost over the past few years when it begins shipping its industry leading on and in-cell solutions in the next two quarters. In the meantime, the company boasts more than $9 of net cash per share. When this excluded from the price, shares trade at just 9x our FY14 earnings, making it a very compelling blend of value and growth, in our opinion."
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 $30.99 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Klarna shares tumble on weak full-year revenue guidance
- DA Davidson Reiterates Buy Rating on Home Depot (HD) Following Earnings Beat
- DeFi Technologies (DEFT) PT Lowered to $1 at Benchmark Following Q2 Miss
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
