Bear Stearns downgrades Synaptics (SYNA) to peer perform from outperform.
Analyst Andrew Neff says the anticipated loss of the company's major customer (Apple) results in a stock that appears to be fairly valued at current levels.
He notes Apple introduced new touchpad for its PowerBook notebooks that uses Apple's own solution using this calendar year's chips. More importantly, believes Apple will use the Apple/calendar year solution in its 5th-generation iPod rather than Synaptic's, as well as in subsequent generations.
Neff cuts $1.13 fiscal 2005 (ending June) earnings per share estimate to $1.12, $1.50 fiscal 2006 earnings per share to $1.10, and $1.95 fiscal 2007 to $1.00 to reflect the impact of the Apple loss. He cuts $49 year-end calendar year 2005 fair value to $25 to $28.