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Investing.com - KeyBanc maintained its Sector Weight rating on Synaptics (NASDAQ:SYNA) following recent investor meetings with the company’s management. According to InvestingPro data, the company currently trades at a market cap of $2.8 billion, with 5 analysts recently revising their earnings estimates upward for the upcoming period.
The investment firm highlighted that Synaptics has clearly shifted its strategy to focus on growing Core IoT, particularly in Wi-Fi and edge AI processors, according to KeyBanc analyst John Vinh.
KeyBanc noted that Astra and co-development efforts with Google for wearable applications represent a "compelling opportunity" for the company, while its Wi-Fi product roadmap has visibility through 2032 with Wi-Fi 9.
Despite expressing encouragement about the focused strategy and growth prospects for Astra, KeyBanc maintained its Sector Weight rating, citing that meaningful Astra growth isn’t expected until fiscal year 2027.
The firm also pointed out that Core IoT currently represents only 30% of Synaptics’ revenue, suggesting limited near-term growth catalysts despite the promising long-term strategy.
In other recent news, Synaptics Incorporated reported its fiscal fourth-quarter earnings for 2025, slightly surpassing expectations. The company achieved earnings per share of $1.01, just above the forecasted $1.00, and generated $282.8 million in revenue, exceeding the anticipated $280.12 million. Despite these positive earnings results, the company’s stock experienced a slight dip. Additionally, Deutsche Bank initiated coverage on Synaptics with a Buy rating and set a price target of $85.00. The bank highlighted the company’s ongoing transition to providing connectivity and processor solutions across various markets. Barclays also began coverage of Synaptics with an Overweight rating and a price target of $78.00. The research firm noted Synaptics’ potential growth opportunities in the Internet of Things (IoT) sectors. Both investment banks acknowledged Synaptics’ strategic shifts and potential for future growth. These developments indicate a continued interest from analysts in Synaptics’ evolving market strategy.
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