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Synaptics -5.6% on Samsung Electronics, Precise Biometrics arrangement; Cowen and Company considers oversold

Published 11/08/2016, 01:13 PM
Synaptics -5.6% on Samsung Electronics, Precise Biometrics arrangement; Cowen and Company considers oversold
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  • Precise Biometrics (OTCPK:PRBCF) and Samsung (KS:005930) Electronics (OTC:SSNLF) entered a partnership in which the former will provide fingerprint software for Samsung's sensor solutions. The development has in turn led to concern Synaptics may lose business from Samsung because of it.
  • Cowen and Company's Robert Stone, however, isn't moving on a $75 target (current price $51.84) and Outperform rating for Synaptics on the news. Notes Samsung has utilized a combination of hardware algorithms in the past and that software generally comprises a comparably small piece of overall value. Additionally sees Samsung developing an under-glass design for the forthcoming Galaxy S8 and believes a tight hardware, software integration will be necessary. Assumes Synaptics would remain involved in sensor and software supply should that be the case.
  • Syanptics (NASDAQ:SYNA) shares had fallen nearly 10% earlier in the day, though have reversed 5.86% upward intraday since that point.

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