Canaccord Genuity analyst Michael Walkley came out today with a bullish call on shares of Skyworks Solutions Inc (NASDAQ:SWKS), after the analog semiconductor maker beat Consensus’ estimates for earnings and revenue in the fiscal 2015 third quarter, and also provided Q4/F2015 guidance above consensus expectations. The analyst reiterated a Buy rating on Skyworks Solutions stock and slightly raised the price target to $132 (from $130).
Walkley wrote, “Despite some weak trends in June quarter global smartphone sales, we believe Skyworks’ strong results and guidance were driven by RF content share in the iPhone 6 and Samsung’s Galaxy S6 smartphones combined with our belief for additional content share gains in the new iPhone 6S smartphones. We also believe growing sales of higher dollar content integrated solutions to Chinese smartphone OEMs contributed to the strong results and guidance. Also, growing traction in its non-handset broad markets business that grew 22% Y/Y in Q3/F’15 helped drive the strong results and margins.”
“We believe Skyworks’ broad portfolio of custom integrated solutions should enable dollar content share growth in both Apple’s and Samsung’s upcoming premium tier smartphones and grow content share in the fast growing Chinese LTE smartphone market. We also believe Skyworks’ diverse analog portfolio positions its broad market division for 20% plus annual growth driven by content share in markets such as 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 Michael Walkley has a total average return of 21.8% and a 65.7% success rate. Walkley has a 74.0% average return when recommending SWKS, and is ranked #16 out of 3714 analysts.