Barclays initiates Synaptics stock with Overweight rating, sees IoT potential

Published 18/08/2025, 08:50
Barclays initiates Synaptics stock with Overweight rating, sees IoT potential

Investing.com - Barclays initiated coverage on Synaptics (NASDAQ:SYNA) with an Overweight rating and a $78.00 price target on Monday. According to InvestingPro data, the stock currently trades at $66.80, with analysts’ targets ranging from $65 to $95, suggesting potential upside. The company’s current market capitalization stands at $2.57 billion.

The research firm cited Synaptics as one of many companies experiencing a prolonged correction following elevated spending during the pandemic period, but highlighted potential growth opportunities in Internet of Things (IoT) segments.

Barclays noted that Synaptics’ recent deal with Broadcom (AVGO) would help maintain competitiveness in wireless connectivity for several years while the company develops proprietary technology in-house.

The firm pointed to Synaptics’ development of AI processors, particularly its deal with Google, as providing a "call option" for a competitive position if Edge IoT materializes, though processors are not currently a material part of the business.

Despite challenges in handicapping potential declines in legacy business segments, Barclays believes the market is overly pessimistic about Synaptics, which trades at approximately 14x CY26 P/E, noting this valuation sits just ahead of RF names but well below peer valuations. InvestingPro’s comprehensive analysis indicates the stock is currently undervalued, with additional insights available in the detailed Pro Research Report, which covers key metrics and growth prospects for over 1,400 US stocks.

In other recent news, Synaptics Incorporated reported its fiscal fourth-quarter earnings for 2025, delivering a slight beat on both earnings per share and revenue. The company achieved an earnings per share of $1.01, surpassing the forecast of $1.00. Revenue for the quarter reached $282.8 million, slightly exceeding the expected $280.12 million. Despite these positive earnings results, the company’s stock experienced a minor dip. These developments highlight Synaptics’ performance in the recent quarter, with earnings and revenue figures surpassing analyst projections. No major mergers or acquisitions were reported during this period. Additionally, there were no significant analyst upgrades or downgrades mentioned for Synaptics at this time. Investors may consider these figures in evaluating Synaptics’ financial health and market performance.

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