Broadpoint.Amtech Issues Buy On SLAB; Hold On SYNA

Broadpoint.Amtech analyst Ian Ing launched coverage of Silicon Laboratories (SLAB) with a Buy rating, while setting a Hold rating on Synaptics (SYNA). Here are a few details from his two reports:

• SLAB: Ing contends the company is in the middle of a multi-year growth cycle. “Innovative products will likely continue to increase SLAB’s opportunities in video demodulators, timing, short-rante wireless and power markets,” he writes. “By innovating in under-served product categories and using strong product definitions and CMOS integration capabilities, SLAB’s new products offer cost, footprint and feature advantages.” Ing contends teh Street is under-estimating growth. He set a price target of $53; the stock Friday closed at $44.66.


• SYNA: Despite the company’s exposure to the the  rapidly growing capacitive touch market, he thinks “downside risk remains balanced with upside reward as handset touch shifts to more chips from modiles and execution risk remains on its re-focused chip roadmap.” He says SYNA is the leader in capacitive touch, with more than 50% of non-Apple handsets and 65%-plus of notebook touchpads. But he also notes that “SYNA has a history of lumpy revenue as products mature and margins are pressured with the emergence of alternate solutions.” He says gross margin dollars will likely keep declining until module-to-chip transition is complete. Ing calculates fair value at $30; the stock Friday closed at $26.

SLAB today is up 37 cents, or 0.8%, to $45.03.

SYNA is down 49 cents, or 1.9%, to $25.51.