Synaptics Incorporated: A Value Play For The Patient
- We're putting Synaptics on the radar for longer-term investors based on our belief that the stock is trading below its intrinsic value and showing modest recovery in its end markets.
- SYNA's end markets, including IoT, Enterprise, auto, and mobile, show modest sequential recovery, with management guiding for 3% Q/Q sales growth next quarter.
- Synaptics is a value play, in our opinion, with a P/E of 26.7x and EV/Sales of 3.0x, trading below semi-peer averages.
- We see an opportunity for longer-term investors to explore entry points into the stock at current levels and let the pace of recovery play out on its own.
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Synaptics Incorporated (NASDAQ:SYNA) reported its first quarter of FY25 earlier this month since the stock price is ~9% higher. We're updating our thoughts on SYNA and putting the stock on the radar for investors interested in a
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