UPDATE: Feltl and Company Initiates Synaptics at Sell

Feltl and Company published a research report on Synaptics (NASDAQ: SYNA) and initiated coverage with a Sell rating and $23 price target.In the report, Feltl and Company wrote, "We believe SYNA remains a leader in touchscreen markets. However, we believe touchscreen markets have begun to see stagnating growth due to expansion of competitive landscape and ASP erosion. Recently reported FY12 saw y-y declines in both SYNA key end markets, PC/Non-PC. FY12 was the first reported y-y decline for SYNA in the last five fiscal years. Guidance for FY13 implied “modest growth.” We believe vague FY13 guidance is quite similar to vague FY12 guidance which implied “flat to up” revenue growth, only to report y-y declines ~8%. SYNA defines itself as a “high growth” company. We believe “high growth” companies typically provide forward revenue guidance implying growth levels ~15- 20%+. Since peaking in FY07 SYNA y-y growth has seen significant deceleration. Over the last five quarters SYNA did not report y-y growth in any quarter. Historical market capitalization trends suggest potential ceiling for SYNA ~$1B.Over the last four fiscal years, including currently, SYNA has exceeded ~$1B in market capitalization six times only to see declines within one or two quarters."Synaptics is currently trading down 1.89 percent from Tuesday's $30.13 closing price.