Synaptics (SYNA) PT Raised to $200 at Needham & Company

Needham & Company analyst Rajvindra Gill raised the price target on Synaptics (NASDAQ: SYNA) to $200.00 (from $180.00) while maintaining a Buy rating.

The analyst commented, "We are raising our price target to $200 (vs. $180) following a strong beat and raise, particularly on gross margins (June 56.5%, upside by 360bps). In the near-to-medium term, SYNA intends to boost revenue growth with aggressive pricing, particularly in mobile DDIC and wireless IoT. Given how fast the company achieved the 55% gross margin level and its successful track record in expanding margins, we believe it can sustain it at that level to accelerate revenue growth and drive operating margin expansion. SYNA remains committed to its long-term target of 57% gross margin. SYNA is rapidly becoming a differentiated IoT company with a unique mutli-processor architecture (voice, video, vision). With higher revenue growth and operating leverage comes a higher multiple, and hence we are raising our PT to $200 (19x our FY2023 EPS estimate)."

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