Synaptics Incorporated has garnered a consensus recommendation of “Moderate Buy” from analysts following the company. According to MarketBeat.com, ten ratings firms currently cover the firm, revealing a diverse range of opinions. Among these, one analyst has rated the stock as a sell, another has assigned a hold recommendation, while seven have issued buy recommendations. Notably, one analyst has given a strong buy recommendation, leading to an average twelve-month price target of approximately $88.29.
Recent evaluations from various analysts highlight a growing confidence in Synaptics’ stock performance. On November 8, 2023, Wall Street Zen upgraded Synaptics from a “hold” to a “buy” rating. Barclays initiated coverage on August 18, 2023, issuing an “overweight” rating with a price target of $78.00. Similarly, on November 7, TD Cowen raised their price objective from $80.00 to $90.00, maintaining a “buy” rating. On November 11, Rosenblatt Securities reiterated a “buy” rating and set a target price of $95.00. Additionally, Zacks Research raised its rating from “strong sell” to “hold” on September 15, 2023.
Stock Performance and Financial Outlook
On November 6, 2023, Synaptics reported its quarterly earnings, showing a positive performance. The company announced earnings per share of $1.09, surpassing analyst expectations of $1.06 by $0.03. Synaptics generated revenue of $292.50 million for the quarter, exceeding estimates of $289.93 million. This represented a 13.5% increase in revenue compared to the same quarter in the previous year, where the company posted earnings of $0.81 per share.
Synaptics set guidance for the second quarter of fiscal year 2026, projecting earnings per share between $1.00 and $1.30. Analysts predict the company will report an earnings per share of $0.96 for the current fiscal year.
The stock opened at $67.74 on November 6, and the company has a market capitalization of $2.64 billion. Financial metrics reflect a price-to-earnings ratio of -55.98 and a beta of 1.63. Over the past year, Synaptics has experienced a low of $41.80 and a high of $89.81.
Share Repurchase Plan and Market Position
In a strategic move to enhance shareholder value, Synaptics’ board approved a share repurchase plan on August 7, 2023, authorizing the company to buy back up to $150 million in outstanding shares. This plan allows for the repurchase of approximately 6.5% of its shares through open market purchases. Such buyback initiatives typically signal that a company’s leadership believes its shares are undervalued.
Synaptics, headquartered in the United States, specializes in developing, marketing, and selling semiconductor products globally. The company’s product offerings include AudioSmart for voice and audio processing, ConnectSmart for high-speed connectivity, DisplayLink for video transmission, VideoSmart for various multimedia applications, and ImagingSmart solutions.
As analysts continue to evaluate Synaptics’ performance and outlook, the consensus remains optimistic, reflecting a robust interest in the company’s future growth potential.
