Synaptics in focus as Barclays initiates with Overweight rating

[Synaptics ground sign outside its office in San Jose, California, USA]
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Synaptics (NASDAQ:SYNA [https://seekingalpha.com/symbol/SYNA]) was in focus on Monday as Barclays initiated coverage on the technology interface company with an Overweight rating and $78 price target.

Shares were little changed in premarket trading.

“SYNA falls into a long list of companies impacted by elevated spend during the pandemic that is now working through a prolonged correction,” Barclays analyst Tom O'Malley wrote in a note to clients. “Efforts in [internet of things], both on the WiFi side as well as processors, are looking to offset that trajectory. The recent AVGO deal helps keep the company’s wireless connectivity portfolio competitive for the next few years, while developing proprietary technology in-house. The move to develop AI processors, most importantly the deal with Google, offers a call option for a competitive position if/when Edge IoT materializes.”

Synaptics is likely to improve its internet of things business, O'Malley added, and there could be a “huge catalyst” if it is able to secure another larger processor win.

As such, the market may be overly penalizing the stock, especially when looking at the valuations of its peers, he added. And with WiFi 7 likely to ramp up next year and Astra the year after, there is a “clear line of sight” for growth in the IoT business over the next couple of years, O'Malley explained.

MORE ON SYNAPTICS

* Synaptics Incorporated (SYNA) Q4 2025 Earnings Call Transcript [https://seekingalpha.com/article/4811561-synaptics-incorporated-syna-q4-2025-earnings-call-transcript]
* Why Synaptics Is A Long-Term Stock To Hold [https://seekingalpha.com/article/4796668-why-synaptics-long-term-stock-to-hold]
* Synaptics Q4 2025 Earnings Preview [https://seekingalpha.com/news/4480137-synaptics-q4-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on Synaptics [https://seekingalpha.com/symbol/SYNA/ratings/quant-ratings]
* Historical earnings data for Synaptics [https://seekingalpha.com/symbol/SYNA/earnings]