Synaptics to regain Apple?

Synaptics could once again do business with Apple, according to one analyst. Cowen and Company has advised investors to purchase shares of Synaptics prior to the company's quarterly earnings report, suggesting that Apple may soon revitalize its relationship with the firm, according to Forbes.com. The analyst firm raised its rating on Synaptics from "neutral" to "outperform," based on beliefs that the touch-sensor component-maker will receive a "meaningful but minority role" as an Apple supplier as soon as the first fiscal quarter of 2007.

"We believe the resumption of iPod business will be reflected in guidance, and our best guess at the potential revenue impact suggests 30%-plus upside in the shares relative to the market over the next 12 months," said analyst Robert Stone of Cowen and Company. "We believe the current share price provides an attractive entry point, and recommend investors purchase before the fourth-quarter call."

by MacNN Staff