Kaufman Bros. initiates coverage on Synaptics Inc. (NASDAQ: SYNA) with a Buy. Price target $38.
Kaufman analyst says, In our view, Synaptics key advantage in the touch interface space is its rich portfolio of offerings that includes a system or vertically integrated stack and stand-alone components. We arrive at our price target assuming a 15x multiple on our calendar 2010 EPS estimate of $2.22 plus $5 in net cash Recently, we believe investors have overreacted to Synaptics' modest September quarter revenue guide-down which we believe has created a window of opportunity as the longer-term secular story with touch interface adoption is still intact.
From our industry and supply chain checks, one of Synaptics' key customers is transitioning to an ASIC solution as it seeks to capture more of the IP itself. Outside of a few vendors, we do not think most customers have the deep engineering resources to build their own touch technologies.
About Stock Einstein
StockEinstein uses proprietary technologies coupled with years of experience to uncover stocks we feel have the greatest potential for breakout performance. We utilize not only software, but time tested criteria to uncover these potential winners. When these benchmarks are reached or exceeded, our subscribers are immediately notified.
This service is free and available only to subscribers. Scroll to the bottom of this page to signup for free stock alerts and visit our site.
Disclaimer: Full disclaimer at http://StockEinsteain.com/disclaimer.php
IMPORTANT: Never invest in any stock featured in any press release, email or website unless you can afford the loss of your entire investment. Stocks and particularly penny stocks have the possibility for dramatic gains, and also losses. Neither StockEinsteain, nor any of its affiliates are registered investment advisors or broker dealers.
