Synaptics (SYNA) share price has yet to "adequately" reflect its transformation benefits, Deutsche Bank said in a note Thursday.

The report said the firm has transformed into a connectivity and processor provider with a diversified end markets from a mobile-centric firm with a significant customer concentration.

The note also said headwinds from the structural moves away from mobile concentration and cyclical correction after the pandemic are "largely complete."

Deutsche Bank said it expects the company's efforts in its core IoT segment and cyclical rebounds in Enterprise and Auto to accelerate its revenue, margin and earnings-per-share growth.

"Based on this combination of increasingly apparent strategic transformation benefits, cyclical rebound potential and steady valuation expansion, we initiate coverage with a Buy rating and a $85 price target," the report said.

Synaptics shares were up over 3% in recent trading.

Price: 71.46, Change: +2.36, Percent Change: +3.41