Brean Capital Initiates Buy On Qorvo, Sees 24% Upside For The Stock
In a research report published Friday, Brean Capital analyst Mike Burton initiated coverage on shares of Qorvo Inc (NASDAQ:QRVO) with a Buy rating and an $80 price target, which implies an upside of 24% from current levels.
Burton said, “Qorvo is the new entity created after the completion of the merger of equals between RFMD and TQNT, which commenced trading on Friday, January 2nd. As we had articulated prior to the completion of the merger, our bullish outlook is based on strong secular growth in RF as 4G proliferates, QRVO’s achievable cost synergies, and the attractive valuation of the shares.”
The analyst continued, “While there is execution risk associated with the integration of any merger, at 11.6x our estimated CY16 EPS of $5.55, QRVO is trading at a steep discount to its peers and broader Semis.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mike Burton has a total average return of 18.8% and a 72.7% success rate. Burton is ranked #150 out of 3426 analysts.