Synaptics, Incorporated (NASDAQ: SYNA), a maker of touch-screen technology, Wednesday rejected an approximately $4 billion buyout offer from a Chinese investment group which bid for over $110 per share. Then stock price jumped up from $60.77 to highest $84.10, and close at $78.55.
In addition, according to Bloomberg report, Synaptic could be holding out for a bid as high as $125 per share. The company and Chinese investment group are still continuing the buyout conversation which raising investor’s interest in Synaptic’s stock.
A successful bid would move Synaptics to the list of chip companies bought by China as president Xi Jinping pushes the country to become technology independence. China, the largest market for chips, is trying to improve national technology so it can provide more of the country’s demand. Nearly 10% of its supplies currently come from Chinese producers.
According to latest report from Zacks Research, Synaptics has been expected target price of $93.222 per share for one year. The upper and the lower end of the price estimates sit at $105 and $80 respectively. The one year price projections represent the short-term outlook of brokerage firms, covering the stock.
The Wall Street analysts are estimating Synaptics to post earnings per share at $1.31 during the release of its latest financial results. The earnings per share projection is issued by Zacks and may slightly vary from First Call forecasts, which is released by Thomson Reuters. According to Zacks, Synaptics is expected to release its earnings report around Jan 28, 2016. During the last quarterly results for the period ended 2015-09-30, the company reported earnings per share of $1.2.