In a research report published before market opened, Canaccord Genuity analyst Michael Walkley reiterated a Buy rating on Skyworks Solutions (NASDAQ:SWKS) and raised his price target to $90 (from $78), as the company reported strong earnings results and provided guidance above Canaccord and consensus expectations. The new price target represents a potential upside of 13.5% from where the stock is currently trading.
Walkley noted, “We believe the strong quarterly results and guidance were driven by very strong iPhone 6 sales with strong Skyworks RF $-content, growing sales of higher $-content Skyworks integrated solutions to Chinese smartphone OEMs, and Skyworks’ growing traction in its non-handset broad markets business.”
The analyst continued, “Given Skyworks’ broad RFIC portfolio and customer base, we believe Skyworks’ diverse analog portfolio is enabling content share gains with its smartphone customers. Further, we anticipate Skyworks’ share gains in markets such as WiFi 802.11ac, wireless infrastructure, and the IoT market are also driving strong growth trends.”
Skyworks Solutions, Inc. is an innovator of high performance analog semiconductors. Leveraging core technologies, Skyworks supports automotive, broadband, wireless infrastructure, energy management, GPS, industrial, medical, military, wireless networking, smartphone and tablet applications.