UPDATE: Stifel Reiterates On Synaptics Following News Of Renesas Acquisition

In a report published Wednesday, Stifel analyst Kevin Cassidy reiterated a Buy rating on Synaptics (NASDAQ: SYNA), and raised the price target from $83.00 to $86.00.

In the report, Stifel noted, “Yesterday after the market close Synaptics confirmed market speculations by announcing signing of a definitive agreement to acquire all outstanding equity of Renesas SP Drivers, Inc., a leading provider of small and medium-sized display driver ICs (DDICs) for smartphones and tablets. We view this announcement as positive for the SYNA shares and for Synaptics becoming the 'one stop shop' for human interface technologies in electronic devices.

"Additionally, management revised its revenue guidance for the June quarter to $300mn-$310mn, up 49% q/q at the mid-point, from $275mn-4285mn previously. We continue recommending Synaptics for its strong product cycles that are driving high double-digit annual growth.”

Synaptics closed on Tuesday at $66.52.