In a research note sent to investors, Oppenheimer analyst Rick Schafer reiterated a Perform rating on Qorvo Inc (NASDAQ:QRVO), following the completion of the merger of equals between RF Micro Devices and TriQuint. No price target was provided.
Schafer noted, “In our view, consolidation of the RF space into effectively three large players (AVGO/QRVO/SWKS) should result in a more favorable operating environment. Moving forward we see reduced pricing/margin pressure and added operational synergies resulting in a more favorable GM/OM structure (mgmt targeting 50%/30%) with improved shareholder returns.”
“While QRVO is positioned as a beneficiary of the 3G-to-4G RF “Boom” cycle, we believe consensus estimates already bake in much of the merger synergies and top-line upside and would prefer to own both AVGO and SWKS.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rick Schafer has a total average return of 17.0% and a 73.5% success rate. Schafer is ranked #217 out of 3420 analysts.