UPDATE: Feltl and Company Downgrades Synaptics to Sell on Risks

Feltl and Company lowered its rating on Synaptics (NASDAQ: SYNA) Hold to Sell and reduced its price target from $21 to $20.

Feltl and Company commented, "Over the last eight quarters SYNA has only reported one quarter with y-y PC revenue growth. We estimate as much as ~50%+ of SYNA's mobile revenue is derived from Chinese based smartphones. During CY13 we believe SYNA will likely face significant competitive alternatives within the Chinese smartphone market. Beyond risks we believe are present within SYNA's own operating model, overall touch markets have seen a marked slowdown relative to prior year levels. Given its sole focus on touch based products/markets we see significant risk to future SYNA revenue growth, operating profitability."

Synaptics closed at $22.72 on Thursday.