SYNA Downgraded On Slower Growth In Handset Segment

Analysts at Cowen & Co downgrade Synaptics (NASDAQ: SYNA) from "outperform" to "neutral," while lowering their estimates for the company.

According to Cowen & Co, the downgrade in the rating is based on slower growth in the handset segment. The analysts expect Synaptics to maintain its dominant position in the notebooks segment due to continued innovation but expect handset revenues to slow to about the same growth rate as PC notebooks due to competitor share gains. “We believe the long-term competitive position is supported by an exclusive focus on human interface design, proliferation of touch interface devices, years of experience on a wide range of platforms, and a strong balance sheet,” the analysts mention.

Cowen & Co has reduced its 2010 cash EPS estimates from $2.06 to $2.01 and 2010 revenue estimates from $498 mm to $495 mm.

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