Research Alert: CFRA Keeps Hold Opinion On Shares Of Synaptics Incorporated
12:30 AM EDT, 05/11/2021 (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 raise our 12-month target to $132, from $118, 15.1x our FY 22 (June) EPS estimate, above SYNA's five-year historical average of 11.4x, supported by recent operational execution and pivot to a richer product mix. We raise our FY 21 EPS estimate to $8.19 from $7.62 and FY 22's to $8.75 from $8.05. SYNA posted Mar-Q EPS of $2.03 vs $1.49, beating consensus by $0.09, as its continued focus on IoT resulted in gross margin upside (55.1% vs 53.2% expectation). Revenues came in at $326M, flat Y/Y, and matched consensus, as strength in IoT and PC helped neutralize weakness in mobile. The recent uplift in gross margin has been encouraging, but we think levels could be cresting, as SYNA attempts to capture new revenue opportunities in display driver integrated circuits (DDICs) by getting more aggressive on pricing. SYNA offered a sequential revenue range that exceeded consensus ($310M-$340M vs. $306M), but upside from already provided levels could be limited, given tight supply chain conditions.