July 31 (Reuters) - Shares of Synaptics Inc (SYNA.O)
slumped as much as 33 percent after the touchscreen technology
maker provided a weak first-quarter and fiscal 2010 outlook,
prompting at least four brokerages to downgrade the stock.
Shares of Synaptics were down $10.69 at $25.16 in Friday
morning trade on Nasdaq. They touched a low of $24.06 earlier
in the session.
The stock was the top percentage loser on Nasdaq and the
eighth most actively traded.
Though the company posted a better-than-expected quarterly
profit, Synaptics said it expects revenue in the current fiscal
first quarter in the range of $113 million to $119 million,
trailing analysts' consensus view of $127.4 million.
[ID:nBNG504893]
Jefferies analyst Adam Benjamin recommended investors step
to the sidelines, given increasing competitive dynamics in the
handset market, which the analyst sees worsening in fiscal
2010.
"While we had anticipated a slightly muted outlook due to
product delays at Nokia, the company's outlook is much worse
than we had anticipated," Collins Stewart analyst John Vinh
said in a note to clients.
"It suggests that other factors have impacted the company's
guidance, including market share loss and a much more abrupt
transition to a lower average selling price (ASP) chip
solutions versus higher ASP modules," he added.
Lazard Capital Markets analyst Daniel Amir said he believes
that investors should wait for a further pullback in the stock
or better visibility on resumption of growth before getting
involved in the stock.
Following are the rating changes made by various brokerages
on Synaptics.
Brokerage Rating
New Old
Lazard Hold Buy
Caris Average Above Average
Collins Stewart Hold Buy
Jefferies Hold Buy
(Reporting by R. Manikandan in Bangalore; Editing by Maju
Samuel)
