J.P. Morgan analyst Paul Coster this morning raised his rating on computer touch-pad maker Synaptics (SYNA) to Overweight from Neutral, setting a $40 price target.
“We believe SYNA will hold share in the PC/laptop market, garner share of the nascent slate computing market, and grow with the high-end smartphone market,” he writes in a research note. “In this context, even with ongoing price pressure from Cypress (CY), Atmel (ATML) and others, we believe that consensus estimates are too low, and that the multiple can expand from these trough levels with solid execution.”
Adds Coster: “The market is opaque, competitive rivalry is acute, so it�s difficult to muster up high conviction, nonetheless, coming off a third consecutive double-digit growth quarter, we believe risk-reward is favorable at
this price levels.”
SYNA this morning is up $1.33, or 5.2%, to $26.90.
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