In a research report released on Friday, Canaccord analyst Michael Walkley reiterated a Buy rating on Apple chip supplier Qorvo Inc (NASDAQ:QRVO) with a price target of $77, as recent surveys indicate record initial demand for the new iPhone 6S products.
Walkley wrote, “Based on our analysis, industry conversations, and recent teardown reports, we believe Qorvo may have increased its RF $-content growth in the recently launched iPhone 6S/6S Plus devices by roughly 10% versus the iPhone 6/6 Plus models and remains a key RF supplier into these devices.”
“Given its strong RF $-content in the new iPhones that are basically consistent with our expectations, we believe Qorvo’s September and December quarters are tracking well versus our estimates. We believe Qorvo has a broad RFIC portfolio for the mobile device market and is well positioned to benefit from strong secular RFIC TAM growth trends. Further, we believe Qorvo has an industry-leading non-handset related RFIC portfolio addressing the higher-margin defense & aerospace and networks infrastructure markets,” the analyst continued.
Walkley concluded, “Given our expectations for high-tier smartphone market share shifts continuing during Q4/C2015 and C2016 and our expectations Qorvo’s increased content sales into Apple’s iPhone 6S upgrade cycle, we believe Qorvo’s near-term trends are tracking well versus our estimates.”
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 16.8% and a 58.7% success rate. Walkley has a -33.9% average return when recommending QRVO, and is ranked #19 out of 3764 analysts.
Out of the 12 analysts polled by TipRanks, 11 rate Qorvo stock a Buy, while 1 rates the stock a Hold. With a return potential of 66.2%, the stock’s consensus target price stands at $81.20.