Bear Stearns Upgrades Synaptics
Bear Stearns upgrades Synaptics Inc. (SYNA ) to outperform from peer perform.
Analyst Andrew Neff upgrades the stock following a recent stock pullback. He cites a more compelling valuation and potential for continued strong growth and earnings per share upsides as the company addresses high-growth markets (notebooks, MP3 players) with its technology, premier customer list, and strong balance sheet along with potential catalyst from smartphones.
He thinks there's an upside potential to the second quarter in view of strong notebook and music players demand. He sees 29 cents second-quarter earnings per share on $55 million of revenue.
Neff also sees 84 cents fiscal 2005 (ending June) earnings per share on $184 million of revenue, and 98 cents fiscal 2006 earnings per share on $219 million of revenue. He sets a $33 calendar year-end 2005 target.