In a report released on April 30, Vijay Rakesh from Mizuho Securities maintained a Buy rating on Skyworks Solutions (SWKS – Research Report), with a price target of $115.00.
Vijay Rakesh has given his Buy rating due to a combination of factors including Skyworks Solutions’ (SWKS) potential for recovery in its Broad Markets segment and its improving gross margins (GMs). Despite a challenging near-term outlook with expected inventory corrections and the anticipated share loss in the iPhone segment, Rakesh foresees a clearing of inventory issues by the end of the June quarter. Additionally, he notes an improvement in the company’s GMs, which are projected to increase and continue improving throughout the year due to product mix shifts and better utilization rates post inventory corrections.
Moreover, Rakesh appears optimistic about SWKS’s prospects in the Android market, particularly in China, and its ability to ramp up at Samsung, which could offset some of the headwinds faced due to the share loss with Apple’s iPhone. While acknowledging the potential negative impact of such a share loss for the near term, especially with the iPhone16, the report suggests that this could conversely be a positive development for Qualcomm (QCOM), indicating a competitive shift in the industry that SWKS could navigate successfully over the longer term.
In another report released yesterday, Craig-Hallum also assigned a Buy rating to the stock with a $125.00 price target.
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Skyworks Solutions (SWKS) Company Description:
Skyworks Solutions, Inc. is a semiconductor company. It engages in designing, manufacturing, and marketing of a broad range of high-performance analog and mixed signal semiconductors that enable wireless connectivity.
