Susquehanna analyst Christopher Rolland reiterated a Buy rating on Skyworks Solutions (SWKS – Research Report) today and set a price target of $125.00.
Christopher Rolland has assigned a Buy rating to Skyworks Solutions, influenced by a combination of factors that suggest an optimistic future for the company. The rating reflects expectations of improved gross margins following a period that appears to be the trough for Skyworks, with signs of recovery in the Broad Markets starting in March (particularly driven by the Internet of Things) and anticipated acceleration in the second half of the year. Moreover, Skyworks has managed to deliver steady results and guidance, with a stronger performance in the Mobile segment due to a ramp-up with Apple and a positive shift in the Android market, which is expected to remain stable or slightly improve.
Furthermore, despite some seasonal decline in Mobile revenue, Skyworks is poised for growth in Broad Markets, with contributions from the adoption of Wi-Fi 6E and 7 technologies, leveraging their expertise in Bulk Acoustic Wave (BAW) filters. Rolland’s optimism also stems from the company’s prospects for diversification and potential benefits from strategic acquisitions. The upgrade in the price target from $120 to $125 is supported by these factors, suggesting a valuation of approximately 20.5 times the 2024 estimated enterprise value to net operating profit after taxes (EV/NOPAT), while also acknowledging risks that could see the stock value decrease to a downside risk of $65.
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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.
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