Synaptics down after KeyBanc downgrades to 'sector weight'

Synaptics Incorporated

08/10/2024 14:46

(Updates)
    ** Shares of chip firm Synaptics  SYNA.O  fall 2.6% to 
    $74.11
  
    ** KeyBanc Capital Markets downgrades to "sector weight"
from "overweight", citing limited growth catalysts within its
Enterprise and Automotive segment, which represents about 60% of
overall revenues
    ** Enterprise unit had benefited from a pull-forward in
demand during the pandemic, which is unlikely to return and
likely to lag any recovery in enterprise spending, brokerage
says
    ** Brokerage says it is concerned about increased
competition in the China market from local chipmaker HiSilicon,
potentially becoming a headwind to SYNA's IoT (internet of
things) growth prospects within China
    ** Seven of 11 brokerages rate the stock "buy", 3 "hold" and
1 "sell"; their median PT is $100
    ** Up to last close, stock had fallen 33.3% YTD

 (Reporting by Harshita Mary Varghese in Bengaluru)
 ((HarshitaMary.Varghese@thomsonreuters.com))