Research Alert: CFRA Keeps Hold Opinion On Shares Of Synaptics Incorporated
01:00 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target to $118 (from $100), 15.5x our FY 21 (June) EPS estimate, closer to the upper end of SYNA's 5-year historical averages and warranted by SYNA's successful pivot to a more IoT-centric business. We raise our FY 21 EPS estimate to $7.62 from $6.82 and FY 22's EPS to $8.05 from $7.47. SYNA posts Dec-Q EPS of $2.30 vs $2.04, beating consensus by $0.17, as improved mix and productivity pushed non-GAAP gross margin higher (920 bps to 52.1%). Revenues came in at $358M, down 8% Y/Y, edging out consensus by $1M, as strong uptake in IoT and PC products offset declines in mobile. SYNA's recent beat-and-raise quarterly results may push shares higher tomorrow; however, we think this could present a difficult setup into Mar-Q, as supply chain shortages and trade restrictions govern its ability to fulfill higher orders in IoT markets. Encouragingly, SYNA also offered long-term targets, with attractive revenue growth (8%-10%) and gross margin (~57%), on a further mix shift to IoT (~40% to ~55%).