Barclays Initiates Coverage on Synaptics with Overweight Rating, $78 Price Target

Barclays Initiates Coverage on Synaptics with Overweight Rating, $78 Price Target

Barclays has initiated coverage on Synaptics (NASDAQ:SYNA) with an Overweight rating and a $78.00 price target, as reported by Investing.com [1]. The stock currently trades at $66.80, with analysts' targets ranging from $65 to $95, indicating potential upside. Synaptics' market capitalization stands at $2.57 billion.

The research firm cited Synaptics as one of many companies experiencing a prolonged correction following elevated spending during the pandemic period. However, Barclays highlighted potential growth opportunities in Internet of Things (IoT) segments. The firm noted that Synaptics' recent deal with Broadcom (AVGO) would help maintain competitiveness in wireless connectivity for several years while the company develops proprietary technology in-house.

Barclays also pointed to Synaptics' development of AI processors, particularly its deal with Google, as providing a "call option" for a competitive position if Edge IoT materializes. Although processors are not currently a material part of the business, they could become significant in the future.

Despite challenges in handicapping potential declines in legacy business segments, Barclays believes the market is overly pessimistic about Synaptics, which trades at approximately 14x CY26 P/E. This valuation sits just ahead of RF names but well below peer valuations. InvestingPro’s comprehensive analysis indicates the stock is currently undervalued.

In other recent news, Synaptics Incorporated reported its fiscal fourth-quarter earnings for 2025, delivering a slight beat on both earnings per share and revenue. The company achieved an earnings per share of $1.01, surpassing the forecast of $1.00. Revenue for the quarter reached $282.8 million, slightly exceeding the expected $280.12 million. Despite these positive earnings results, the company's stock experienced a minor dip. These developments highlight Synaptics’ performance in the recent quarter, with earnings and revenue figures surpassing analyst projections.

References:
[1] https://www.investing.com/news/analyst-ratings/barclays-initiates-synaptics-stock-with-overweight-rating-sees-iot-potential-93CH-4196776