Canaccord analyst Michael Walkley weighs in on shares of Qorvo Inc (NASDAQ:QRVO) after the wireless chip maker released its fiscal first-quarter results, posting revenues of $698 million, beating estimates of $650 million. Additionally, revenue guidance of $835 million for Q2/F’17 was well above consensus of $714 million. In reaction, Walkley raised his price target for QRVO from $60.00 to $67.00, while reiterating a Buy rating.

The analyst noted, “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-mode versus 3-mode in China, and other positive growth trends.”

Despite the earnings beat, the company’s gross margins fell below expectations due to yield issues and product costs. Gross margin guidance was at 50%, but the company reported gross margins of 48.2%. This does not worry the analyst, noting, “Given our belief Qorvo is increasing $-content share in the iPhone 7 and improving share with Android OEMs, we anticipate Qorvo to return to double digit growth for F’17 and beyond.”

Michael Walkley is ranked #20 of 4,071 analysts on TipRanks. He maintains a success rate of 60% and realizes an average return of 15.3%. When rating QRVO, the analyst maintains a success rate of 38% and an average loss of 11.3%.

According to TipRanks, 53% of analysts issue a Buy rating for QRVO, 40% maintain a Hold rating, and 7% issue a Sell rating on the stock. The consensus target price for QRVO is $60.64, marking a 1.32% downside from current levels.

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