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Despite the price target cut, Mizuho has maintained an ‘Outperform’ rating on the stock. The brokerage’s analysts believe that Synaptics’ revenue stream has stabilized and is past the trough now.
Shares of Synaptics Inc. (SYNA) tumbled more than 6% in mid-day trade on Friday after analysts at Mizuho lowered their price target for the stock.
According to TheFly, Mizuho now has a price target of $90, down from $95, on Synaptics’ shares. This implies an upside of over 28% from current levels.
Despite the price target cut, Mizuho has maintained an ‘Outperform’ rating on the stock. The brokerage’s analysts believe that Synaptics’ revenue stream has stabilized and is past the trough now.
Synaptics reported its second-quarter results earlier this week, with earnings per share (EPS) of $0.92, versus a consensus of $0.86, according to Stocktwits data.
The San Jose, California-based company posted a revenue of $267.2 million, ahead of analyst estimates of $265.73 million.
This compares to an EPS of $0.57 and revenue of $237 million during the same period last year.
Synaptics guided for an EPS of $0.85 for the third quarter, ahead of consensus estimates of $0.77.
The computer-to-human interface device development company expects third-quarter revenue in the range of $250 million to $280 million, again, ahead of consensus of $258 million, according to Stocktwits data.
Synaptics also announced a leadership transition, with Michael Hurlston resigning as CEO. The company said the search for Hurlston’s replacement has begun. In the meantime, CFO Ken Rizvi will serve as interim CEO.
Retail sentiment on Stocktwits soared despite the price target cut and Hurslton’s exit. It hovered in the ‘extremely bullish’ (97/100) territory, while message volume was at ‘extremely high’ levels at the time of writing.
Synaptics’ share price has moved sideways over the past six months, gaining just 4.3%. However, its one-year performance is worse, with a decline of over 34%.
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