Buy Synaptics On Dips (SYNA)

Shaw Wu, analyst at Kaufman Bros., has reiterated a Buy rating on Synaptics Inc. (NASDAQ: SYNA) and assigned a price target of $38.00.

Santa Clara, California based Synaptics Inc. designs and sells human interface solutions for digital products. The analyst expects a solid Dec quarter announcement and expects good numbers from all major clients. For the next quarter, management may give out a conservative guidance; however increase in PC demand coupled with earnings from Google Nexus One is expected to allow the company to beat its guidance comfortably.

Nexus One is expected to generate revenues worth $115 million. The stock has been outperforming consistently, and may see a dip due to profit booking, however Kaufman Bros. recommends buying the stock at dips as it believes that the company is best placed to exploit potential opportunities in the interface solutions space.