UPDATE: Oppenheimer Upgrades Synaptics on Multiple Positive Factors

In a report published Friday, Oppenheimer analyst Andrew Uerkwitz upgraded the rating on Synaptics SYNA from Perform to Outperform, and named a $55.00 price target. In the report, Oppenheimer noted, “We are upgrading Synaptics to Outperform from Perform and introducing a $55 price target. We believe the stock will break out to new highs as SYNA: 1) expands its presence in Chinese smartphones; 2) continues to gain market share in tablets; and 3) gets material traction in the note/ultrabook space with touch displays and thin keyboards. We believe investors are underestimating its leadership in technology and ability to move beyond headline grabbing design wins. Additionally, we see limited downside as the stock is trading at just 11x on forward P/E vs a peer group median of 20x. Finally, sitting on $13/share in cash, SYNA has plenty of flexibility for additional value creation.” Synaptics closed on Thursday at $42.32.