In a research report sent to investors, Oppenheimer analyst Rick Schafer reiterated an Outperform rating on Skyworks Solutions (NASDAQ:SWKS) and slightly raised his price target to $85 (from $80), ahead of the company’s fourth-quarter results on Thursday, January 22.

Schafer wrote, “On continued wireless strength, we see upside to consensus F1Q (Dec.) sales/EPS estimates of $774M/$1.19. RF “Boom” Cycle momentum should drive better than seasonal F2Q (Mar.) outlook; thus consensus $706M (-9% Q/Q) estimate may prove conservative. Normal F2Q softness should be less pronounced considering iPhone 6/+ success and Samsung’s GS6 pre-launch builds. We see sustained growth/upside for SWKS through 2015 on China’s aggressive transition to LTE devices, deepening 802.11ac penetration, IoT and Apple’s next platform refresh. RF industry consolidation should provide added GM and FCF tailwinds and bolster mgmt’s targeted 40% FCF return.”

The analyst concluded, “Up 155% in 2014, SWKS still trades just 13.5x (ex-cash) our CY16E EPS of $5.30, a modest but tough-to-justify discount to peers’ 15x. With its systems-level approach, and mgmt’s clear commitment to shareholder returns, SWKS continues to distance itself from competitors. Still an early innings story; we’d remain buyers here.”