Synaptics (SYNA) Stock Forecast & Price Target

Synaptics Inc is poised for robust growth, with Core IoT revenue projected to increase by 15.6% year-over-year in FY27, reflecting a strategic shift towards higher growth segments such as wireless and enterprise solutions. The company's new management team is expected to effectively guide the strategic transformation necessary to enhance revenue growth and improve operating margins, particularly in the automotive market. Additionally, Synaptics is experiencing broad-based revenue strength in its wireless segment, supported by significant design wins and increasing demand from leading OEMs in China, which may help sustain its expansion trajectory in both consumer and industrial applications.

Synaptics Inc is facing a challenging outlook due to weaker-than-expected growth in key sectors, particularly in the Internet of Things (IoT) and mobile markets, which together contribute significantly to its revenue. The company has reported a notable decline in its Enterprise and Mobile segments, with decreases of 1.5% and 15.6% quarter-over-quarter, respectively, which raises concerns about the sustainability of its market position and future earnings. Furthermore, the anticipated non-GAAP gross margin of 53.5% and operating expenses that fell short of expectations indicate potential pressures on profitability and overall financial performance moving forward.