Deutsche Bank Gives Synaptics (SYNA) a Buy Rating

Synaptics Incorporated (NASDAQ:SYNA) is one of the 14 Small Publicly Traded Semiconductor Companies to Invest in Now. On September 11, Deutsche Bank initiated coverage on Synaptics Incorporated (NASDAQ:SYNA), assigning a Buy rating and setting the price target at $85.

The investment bank has a positive outlook on Synaptics Incorporated (NASDAQ:SYNA) as it shifts from a mobile-centric company to a provider of connectivity and processor solutions across a wide range of industries.

Deutsche Bank Gives Synaptics (SYNA) a Buy Rating

Deutsche Bank pointed out that Synaptics Incorporated (NASDAQ:SYNA) has lowered its mobile concentration, which used to represent about 40% of the company’s revenue. The company has also reduced customer concentration, especially with Apple Inc. (AAPL), which used to represent about 30% of sales.

The investment bank expects Synaptics Incorporated’s (NASDAQ:SYNA) revenue, margin, and EPS growth to accelerate. This growth will be driven by the core IoT segment and cyclical rebounds in the Enterprise and Auto segments.

Synaptics Incorporated (NASDAQ:SYNA) designs and sells custom semiconductor solutions for a wide range of applications, including human-machine interfaces and AI-native embedded computing.

While we acknowledge the potential of SYNA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SYNA and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.