SYNA Should I Buy
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Synaptics Inc (SYNA) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company shows strong growth in its IoT segment, positive analyst sentiment with raised price targets, and a bullish technical setup. Despite short-term financial challenges, the long-term growth outlook and positive catalysts make it a compelling investment opportunity.
The MACD is positive and expanding, indicating bullish momentum. The RSI is neutral at 68.524, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The current price of $92.41 is above the pivot level of $88.327, with resistance levels at $94.494 and $98.305, suggesting room for upward movement.
The Core IoT segment achieved 53% YoY growth, indicating strong demand in a high-growth market.
Analysts have raised price targets across the board, with a consensus bullish outlook.
The company has reported five consecutive quarters of double-digit revenue growth, showcasing consistent performance.
The merger of processors and connectivity teams aims to enhance operational efficiency.
Net income dropped significantly YoY, with a loss of $14.8 million in Q2
EPS declined to -$0.38, reflecting profitability challenges.
Gross margin dropped to 42.28%, down 4.58% YoY, indicating cost pressures.
In Q2 2026, revenue increased by 13.21% YoY to $302.5 million, marking strong top-line growth. However, net income dropped by 922.22% YoY to -$14.8 million, and EPS fell by 860.00% YoY to -$0.38. Gross margin also declined to 42.28%, down 4.58% YoY. Despite these short-term challenges, the company maintains a positive multi-year growth outlook.
Analysts are broadly positive on SYNA, with multiple firms raising price targets recently. Notable updates include Needham ($105), Mizuho ($103), and TD Cowen ($100), all maintaining Buy or Outperform ratings. Analysts highlight strong growth in IoT and AI-enabled wearables as key drivers, while some caution about near-term pressures in auto and mobile segments.
