As the peak of earnings season continues, top analysts from brokerage firms Piper Jaffray and Canaccord are weighing in on daily-deals company Groupon Inc (NASDAQ:GRPN) and wireless chip maker Skyworks Solutions Inc (NASDAQ:SWKS). Let’s take a closer look.
Shareholders of Groupon are having a rough day as the company’s stock is down by 18% in the wake of disappointing first-quarter earnings.
After taking a deeper look into the earnings, Piper Jaffray analyst Gene Munster reiterated a Neutral rating on the stock with a $4 price target, which implies an upside of 8% from current levels.
Munster opined, “Overall, we view the turnaround story as on track, and the sell off in shares of GRPN triggered by investor expectations that the turnaround would yield higher revenue growth in Mar-16. We continue to view Groupon’s core headwind as being the need for virality in its local deals product, and believe the company is taking the right steps by divesting, exiting, or abandoning regions and products that distract from its core consumer product. We are maintaining our Neutral rating until we see continued progress that the turnaround is driving improvement in North American billings growth.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gene Munster has a yearly average return of 17.5% and a 59.9% success rate. Munster has a -15.3% average return when recommending GRPN, and is ranked #6 out of 3913 analysts.
Out of the 21 analysts polled by TipRanks, 4 rate Groupon stock a Buy, 14 rate the stock a Hold and 3 recommend a Sell. With a return potential of 13%, the stock’s consensus target price stands at $4.18.
Skyworks Solutions Inc
In a research report released Friday, Canaccord analyst Michael Walkley reiterated a Buy rating on shares of Skyworks, while reducing the price target to $95 (from $105), as the magnitude of the inventory reduction at Apple is greater than Walkley’s initial expectations.
Walkley explained, “Skyworks reported Q2/F2016 results of $775M and $1.25, consistent with our estimates of $775M and $1.23. Q3/F2016 guidance of $750M in sales and non-GAAP EPS of $1.21 was below our expectations of $796M and $1.33 as the ongoing iPhone inventory correction is greater than our initial expectations.”
“While we believe the RF TAM for smartphones remains a growth market for the next several years due to increasing mix of LTE, carrier aggregation, 5/6-mode versus 3- mode in China, and other positive growth trends, we expect a challenging smartphone macro environment to persist during F2016 given our belief iPhone inventory continues to work through the channel,” the analyst continued.
According to TipRanks.com, analyst Michael Walkley has a yearly average return of 14.1% and a 57% success rate. Walkley has a 36.7% average return when recommending SWKS, and is ranked #29 out of 3913 analysts.
Out of the 22 analysts polled by TipRanks, 19 rate Skyworks stock a Buy, while 3 rate the stock a Hold. With a return potential of 43%, the stock’s consensus target price stands at $95.22.