Synaptics' Strategic Leadership and Technological Advancements Fuel Analyst's Buy Rating

Synaptics' new CEO Rahul Patel is expected to drive the company's transition to become a systems-level provider of Edge IoT devices, leveraging its long history and adaptability in the semiconductor industry. The company's focus on Core IoT, partnership with Google, advancements in WiFi-7 and foldable touchscreens, AI monetization, and channel expansion support continued EPS growth, justifying a Buy rating.

Synaptics Incorporated (SYNA), a technology interface company, has received a significant boost in analyst ratings, reflecting optimism about its transition to become a systems-level provider of Edge IoT devices. The company's new CEO, Rahul Patel, is seen as a key driver of this transformation, leveraging Synaptics' long history and adaptability in the semiconductor industry.

Barclays analyst Tom O'Malley initiated coverage on Synaptics with an Overweight rating and a $78 price target. O'Malley noted that Synaptics falls into a category of companies experiencing a prolonged correction due to elevated pandemic spending. However, he sees efforts in internet of things (IoT) and wireless connectivity as potential offsets to this trajectory. The recent acquisition of AVGO and the development of AI processors, including a deal with Google, are highlighted as strategic moves that could position Synaptics competitively in the Edge IoT market [1].

Needham analyst Nick Doyle also maintained a bullish stance on Synaptics, giving it a Buy rating. Doyle cited Synaptics' strategic positioning and growth potential, particularly under the leadership of CEO Rahul Patel. Patel's vision is to transition Synaptics into a systems-level provider of Edge IoT devices, building on the company's strengths in Core IoT and partnerships with technology giants like Google. Advancements in WiFi-7, foldable touchscreens, AI monetization, and channel expansion further support this positive outlook [2].

Both analysts agree that Synaptics' focus on these areas is likely to drive continued EPS growth, justifying their respective ratings. As WiFi 7 and Astra technologies are set to ramp up in the coming years, there is a clear line of sight for growth in Synaptics' IoT business.

References:
[1] https://seekingalpha.com/news/4486529-synaptics-in-focus-as-barclays-initiates-with-overweight-rating
[2] https://www.tipranks.com/news/ratings/synaptics-strategic-leadership-and-technological-advancements-drive-buy-rating-ratings