Skyworks Solutions Inc (NASDAQ:SWKS), an innovator of high performance analog semiconductors connecting people, places and things, today announced that for $76.5 million, it has acquired the remaining 34 percent interest it did not already own in the filter joint venture it created with Panasonic in 2014. At the core of the joint venture was Panasonic’s engineering and process talent, expertise in filter design and leading edge products, as well as 412 fundamental filter patents and patent applications for surface acoustic wave (SAW) and temperature compensated (TC) SAW devices. In August 2015, Skyworks expanded its production capacity with the addition of a 405,000 square foot facility in Osaka to help meet the growing demand for highly integrated solutions leveraging filter technology. To date, total production has exceeded more than two billion filters. The acquisition is not expected to impact Skyworks’ consolidated financial statements as operations have been consolidated with Skyworks’ financial statements since the date of the initial joint venture.
“With this acquisition, Skyworks has strengthened its leadership position as one of the world’s largest providers of high performance, integrated-filter solutions,” said Liam K. Griffin, president and chief executive officer of Skyworks. “Given the proliferation of frequency bands, the addition of LTE capabilities and market demand for always-on connectivity, the need for filters has never been higher. Our strategic investment uniquely enables us to deliver end-to-end solutions for some of the fastest growing and most demanding applications in the world requiring high performance filter technology. Together with external partners, we are successfully addressing the low, mid and high band performance requirements across premium smartphones and IoT applications.”
According to a recent Research and Markets report, the global radio frequency filter market is expected to grow at a CAGR of 15 percent during the period 2016-2020 and the rise in the number of frequency bands, modulation schemes and power amplifier modes to support increased mobile data traffic is resulting in high RF front-end complexity. (Original Source)
Shares of Skyworks Solutions closed yesterday at $65.04, down $0.82 or -1.25%. SWKS has a 1-year high of $92.63 and a 1-year low of $54.50. The stock’s 50-day moving average is $64.47 and its 200-day moving average is $67.06.
On the ratings front,SWKS has been the subject of a number of recent research reports. In a report issued on July 22, Barclays analyst Blayne Curtis reiterated a Buy rating on SWKS, with a price target of $74, which implies an upside of 13.8% from current levels. Separately, on the same day, Morgan Stanley’s Craig Hettenbach reiterated a Sell rating on the stock and has a price target of $61.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Blayne Curtis and Craig Hettenbach have a total average return of 7.5% and 27.6% respectively. Curtis has a success rate of 64% and is ranked #405 out of 4071 analysts, while Hettenbach has a success rate of 64.5% and is ranked #82.
The street is mostly Bullish on SWKS stock. Out of 14 analysts who cover the stock, 7 suggest a Buy rating , 4 suggest a Hold and 3 recommend to Sell the stock. The 12-month average price target assigned to the stock is $77.00, which implies an upside of 18.4% from current levels.
Skyworks Solutions, Inc. engages in the design, development, and manufacture of proprietary semiconductor products. Its product portfolio includes amplifiers, attenuators, circulators, demodulators, detectors, diodes, directional couplers, front-end modules, hybrids, infrastructure RF subsystems, isolators, lighting and display solutions, mixers, modulators, optocouplers, optoisolators, phase shifters, synthesizers, power dividers and combiners, power management devices, receivers, switches and technical ceramics.