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Investing.com - Deutsche Bank initiated coverage on Synaptics (NASDAQ:SYNA) with a Buy rating and a price target of $85.00 on Thursday. The stock, currently trading at $69.10, shows potential upside according to InvestingPro Fair Value calculations, with analysts’ targets ranging from $65 to $95.
The investment bank cited Synaptics’ ongoing transformation from a mobile-centric company to a provider of connectivity and processor solutions across diversified markets as the key reason for its positive outlook.
Deutsche Bank noted that Synaptics has reduced its mobile concentration from approximately 40% of revenue and decreased customer concentration, particularly with Apple which previously represented about 30% of sales.
The bank expects Synaptics’ revenue, margin, and earnings per share growth to accelerate, driven by strategic efforts in its Core IoT segment (approximately 25% of revenue) with projected 20%+ compound annual growth rate, alongside cyclical rebounds in Enterprise and Auto segments (approximately 55% of revenue).
Deutsche Bank also anticipates potential valuation expansion from historical low-teens price-to-earnings levels as the market recognizes Synaptics’ improved diversity and secular growth potential in areas such as Core IoT, Edge AI, and automotive applications.
In other recent news, Synaptics Incorporated reported its fiscal fourth-quarter earnings for 2025, achieving results that slightly exceeded expectations. The company posted earnings per share of $1.01, surpassing the forecast of $1.00, and generated revenue of $282.8 million, slightly above the anticipated $280.12 million. Despite these positive earnings and revenue figures, the company’s stock experienced a small decline. Additionally, Barclays initiated coverage on Synaptics with an Overweight rating and set a price target of $78.00. Barclays highlighted the potential growth opportunities for Synaptics in the Internet of Things (IoT) segments, noting the company’s position following a prolonged correction after elevated pandemic spending. These developments reflect recent activity and analysis surrounding Synaptics, offering insights into its current financial and market situation.
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