Be Cautious On Synaptics (SYNA)

Analysts at ThinkEquity LLC have rated Synaptics Incorporated (NASDAQ: SYNA) as Hold with a fair value estimate of $23.00.

Synaptics develops human interface solutions for mobile computing, communications, and entertainment devices. A few quarters back, Synaptics was the market leader in its segment and was in fact growing much faster than the market. However its revenues are seeing increased pressure, especially from Taiwanese companies, and today it is growing well below the market. SYNA’s performance was dismal in the notebook market where it is losing market share heavily. In the September quarter, Synaptics' revenues from the notebook segment grew only 13% when compared to industry growth of a handsome 30%.