Wells Fargo analyst Gary Mobley maintained a Hold rating on Skyworks Solutions (SWKS – Research Report) yesterday and set a price target of $110.00.
Geoff Meacham has given his Hold rating due to a combination of factors which indicate a measured outlook for Skyworks Solutions. The expectation of in-line results for the first quarter of fiscal year 2024, coupled with a high dependency on Apple for revenue and ongoing inventory adjustments in broader markets, suggests limited potential for significant outperformance in the near term. While there is some optimism with an improving Android market, it is not sufficient to dramatically alter the overall revenue mix, as Android-related sales remain relatively modest in comparison to Apple’s contribution.
Furthermore, Skyworks anticipates a decline in gross margins due to lower factory utilization and a less favorable product mix, with recovery not expected until the second half of the fiscal year. The muted growth in iPhone shipments is projected to restrain the upside for Skyworks’ mobile segment revenue. Adjustments to fiscal year estimates reflect these conditions, with flat mobile revenue and a significant decline in broad market revenue anticipated. Despite the introduction of fiscal year 2026 estimates, the current factors lead to a cautious stance, hence the Hold rating.
In another report released yesterday, B.Riley Financial also maintained a Hold rating on the stock with a $110.00 price target.
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on SWKS:
- Citi replaces Nvidia with Marvell as top specialty semi pick
- Skyworks price target raised to $120 from $110 at Susquehanna
- Apple downgraded, Micron upgraded: Wall Street’s top analyst calls
- Piper Sandler downgrades Skyworks to Neutral on valuation, large customer risks
- Skyworks downgraded to Neutral from Overweight at Piper Sandler
