Canaccord Genuity analyst Michael Walkley came out today with a favorable report on Skyworks Solutions Inc (NASDAQ:SWKS), after hosting an investor meetings with Don Palette, Skyworks’ VP and Chief Financial Officer. The analyst reiterated a Buy rating on the stock, while raising the price target to $130 (from $108), which represents a potential upside of 19% from where the stock is currently trading.
Walkley noted, “We believe Skyworks is well positioned to generate at least 15% plus year-over-year sales growth with expanding margins through F2017. We believe Skyworks strong portfolio of integrated solutions increases Skyworks’ opportunity to bid for an increasing number of design wins for the fast growing RFIC market and should enable Skyworks to capture RF $-content share in the LTE smartphone market.”
“In fact, we believe Skyworks’ broad portfolio has enabled dollar content share growth in both Apple’s and Samsung’s premium tier smartphones during 2015 along with growing content share gains in the fast growing Chinese LTE smartphone market. We also believe Skyworks’ diverse analog portfolio positions its broad market division for roughly 20% annual growth driven by content share in markets such as WiFi 802.11ac, wireless infrastructure, and the IoT market.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst T. Michael Walkley has a total average return of 25.1% and a 72.5% success rate. Walkley has a 87.3% average return when recommending SWKS, and is ranked #3 out of 3610 analysts.