November 22, 2017 -
Synaptics shares have risen on a report by Keybanc semiconductors market analyst John Vinh that the company is closer to mass production of its in-display fingerprint sensor than he had previously thought, Barron’s reports.
“We believe Synaptics has significantly improved performance in its in-display fingerprint sensor and is currently undergoing final qualification at a tier-1 Chinese OEM,” wrote Vinh, KeyBanc Capital Markets Managing Director, Equity Research Analyst, per Barrons. “We believe the company’s in-display fingerprint sensor still falls short of achieving performance parity with capacitive sensing, but has approached levels “good enough” to warrant final customer evaluations and potential mass production. We believe Synpatics has made meaningful progress in working through cases such as low temperatures and direct sunlight. There appears to be only one other competitor who is sampling, which is Goodix, but we believe Synaptics holds an advantage in terms of performance and time to market.”
Vinh rates the company’s shares “Sector Weight,” expressing concern over price pressures and uncertainty related to its optical fingerprint sensor and the risk of loss of market share for the iPhone 10. He sets the stock’s fair value at $40.
As previously reported, Synaptics’ family of optical-based, under-glass fingerprint authentication solutions was named a CES 2018 Innovation Awards Honoree earlier this month.
Synaptics shares were hovering around $40 late in Wednesday trading.