In a research report released Friday, MKM Partners analyst Ruben Roy reiterated a Buy rating on shares of Skyworks Solutions Inc (NASDAQ:SWKS) with a price target of $115, after the wireless chip maker reported solid June quarter results with sales of $900.8 million and EPS of $1.57, above Street estimates of $890 million and $1.52, respectively. Q4/ F2017 guidance of $980 million in sales and non-GAAP EPS of $1.75 was above Street estimates of $973 million and $1.73, respectively.
Roy commented, “SWKS, again, beat expectations with its June quarter results and provided above consensus guidance for the September quarter. While there appears to be some concern regarding the lack of gross margin leverage, on a year-over-year basis, despite the magnitude of revenue growth over that time period, we believe that the company’s path to its 53% longer-term gross margin target (and likely beyond) is well laid out. In the meantime, we expect SWKS’ revenue growth to continue to exceed broader semiconductor growth as we continue to expect the company to be one of few beneficiaries of significant RF content expansion over the next several years. For longer-term minded investors, we continue to view SWKS as an attractively valued growth story.” (To watch Roy’s track record, click here)
Out of the 14 analysts polled in the past 3 months, 11 rate Skyworks stock a Buy, and 3 rate the stock a Hold. With a downside potential of 1.0%, the stock’s consensus target price stands at $106.61.