Bear Stearns Cuts Synaptics's Target
Bear Stearns cuts Synaptics Inc. (SYNA ) $53 calendar year-end target to $49.
Analyst Andrew Neff has concerns regarding a possible change in Apple's user interface sourcing strategy, a perceived risk to the Apple/Synaptics relationship.
He notes Apple introduced a new touchpad solution (TrackPad) for its PowerBook notebooks last week that appears to use Apple's own solution.
While the impact of the loss of Apple's PowerBook line is minimal (about 2% of Synaptics's notebook revenue), his concern is TrackPad may signal a change in Apple's strategy whereby it may source all of its interface solutions internally.
Neff says while Synaptics could be weak on news, he maintains estimates and rating at outperform.