Will This Price Target Increase Help Synaptics (SYNA) Stock Today?

Story updated at 9:55 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Sterne Agee raised its price target for Synaptics (SYNA) to $83 Wednesday, reiterating its "buy" rating for the company.

Synaptics gained 27.3% to $84.68 in morning trading.

The firm also raised its EPS estimates for the company following the acquisition of Renesas SP.

"Financially, the deal is attractive with a purchase price at 5X $100 million in cash flow on $650 million of revenue and is expected to be accretive immediately," analysts Andrew Huang and John Shen wrote. "Strategically, the deal will enable Synaptics to increase its dollar content in mobile devices, accelerate its product roadmap for display integration, and strengthen its customer relationships. Synaptics also raised Jun Qtr guidance on better than expected demand for mobile devices."

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Separately, TheStreet Ratings team rates SYNAPTICS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate SYNAPTICS INC (SYNA) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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