NEW YORK (TheStreet) -- Shares of Synaptics (SYNA - Get Report) are climbing 9.64% to $56.96 in late-afternoon trading despite Needham dropping its price target on the stock to $65 from $88. The firm has a "buy" rating on the stock.
Needham said the company's main concern is whether or not it will win business from Apple (AAPL) for a presumed iPhone 8 to be released next year, Barron's reports.
The firm added that Synaptics produces a display driver integrated circuit (DDIC) which investors speculate will be used in the iPhone 8 display for organic light-emitting diode (OLED) technology.
"While we are confident in Synaptics' OLED product roadmap, at this time, we remain uncertain on whether they have secured the OLED DDIC for the iPhone 8 vs. an internal Samsung solution," Needham said in a note cited by Barron's.
Synaptics is a San Jose, CA-based touch-sensor controller chip producer.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: SYNA