Robert W. Baird analyst Tristan Gerra has reiterated their neutral stance on SWKS stock, giving a Hold rating today.
Geoff Meacham has given his Hold rating due to a combination of factors that present a mixed outlook for Skyworks Solutions. The company faces headwinds with a less than optimistic iPhone procurement forecast for the upcoming year, and softness in the China smartphone market. Additionally, there is a noted weakness in the Industrial and Automotive sectors, which could dampen the broader market performance. Despite these challenges, the current valuation of the company is deemed fair, considering the customer concentration and limited growth opportunities in the medium term.
The management of Skyworks Solutions is maintaining a positive outlook on the long-term growth rate for RF, but challenges persist with unit weakness expected to continue. Though Skyworks has made some gains with Google and aims for market share increases in China towards the end of the year, ongoing inventory adjustments in the industrial sector could pressure revenues for additional quarters. While IoT revenue seems to be stabilizing, the wireless infrastructure segment is experiencing an inventory surplus. Looking further ahead, there may be opportunities for gross margin expansion and a potential uplift from the Wi-Fi7 ramp expected in 2025. However, these prospects are not sufficient to upgrade the rating at this time, leading to the reaffirmation of a Neutral stance with a price target of $90.
In another report released today, B.Riley Financial also maintained a Hold rating on the stock with a $115.00 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.
Read More on SWKS:
- Skyworks Solutions Declares Cash Dividend for Shareholders
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- Skyworks price target raised to $110 from $89 at B. Riley
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