UPDATE 1-Synaptics shares tumble after weak Q1, FY10 outlook
8 hours ago - Reuters
July 31 (Reuters) - Shares of Synaptics Inc (SYNA) slumped as much as 33 percent after the touchscreen technology maker provided a weak first-quarter and fiscal 2010 outlook, prompting at least four brokerages to downgrade the stock.
Shares of Synaptics were down $10.69 at $25.16 in Friday morning trade on Nasdaq. They touched a low of $24.06 earlier in the session.
The stock was the top percentage loser on Nasdaq and the eighth most actively traded.
Though the company posted a better-than-expected quarterly profit, Synaptics said it expects revenue in the current fiscal first quarter in the range of $113 million to $119 million, trailing analysts' consensus view of $127.4 million. ReutersLink ID='ID:nBNG504893' /
Jefferies analyst Adam Benjamin recommended investors step to the sidelines, given increasing competitive dynamics in the handset market, which the analyst sees worsening in fiscal 2010.
"While we had anticipated a slightly muted outlook due to product delays at Nokia, the company's outlook is much worse than we had anticipated," Collins Stewart analyst John Vinh said in a note to clients.
"It suggests that other factors have impacted the company's guidance, including market share loss and a much more abrupt transition to a lower average selling price (ASP) chip solutions versus higher ASP modules," he added.
Lazard Capital Markets analyst Daniel Amir said he believes that investors should wait for a further pullback in the stock or better visibility on resumption of growth before getting involved in the stock.
Following are the rating changes made by various brokerages on Synaptics.
Brokerage Rating
New Old
Lazard Hold Buy
Caris Average Above Average
Collins Stewart Hold Buy
Jefferies Hold Buy (Reporting by R. Manikandan in Bangalore; Editing by Maju Samuel)
News 
Market Data 
Discover 
