UPDATE: Lake Street Initiates Coverage on Synaptics with a Buy Rating

In a report issued Wednesday, May 14, Lake Street Capital initiated coverage of Synaptics, Inc.

with a Buy rating and $71 price target. Lake Street Capital analyst Jaeson Schmidt stated, “With a rapidly growing TAM driven by proliferation of touchscreen devices and an emerging wave of biometric (fingerprint) adoption, a market leading position, and the stock trading at only 10x (ex cash) our FY16 EPS estimate of $5.03, we think the stock is poised to go higher.” With past acquisitions of Validity Sensors, a biometric sensor firm, and Palcinian, a firm specializing in Thintouch keyboards, the company is said to be in a position to address the emerging technology of biometic sensors in consumer electronic, and add growth to its industry-leading touch market share. Synaptics shares are down about $0.50 to $59.75 despite the bullish new rating. Schmidt's new price target implies potential upside of about 18 percent.