Canaccord Reiterates Buy on Qorvo Inc Following Global Growth Conference
In a research report issued today, Canaccord analyst Michael Walkley reiterated a Buy rating on shares of Qorvo Inc (NASDAQ:QRVO) with a $77 price target, after the Company’s CFO Steve Buhaly conducted investor meetings at the Canaccord Genuity Global Growth Conference in Boston.
Walkley wrote, “Management highlighted its integrated solutions platforms, growing content share in LTE smartphones, and strong long-term growth opportunities for both its smartphone related solutions and its IDP business. Despite the recent September quarter guidance below consensus due to slighlty weaker Android smartphone sales trends at some of its Chinese OEM customers, we believe the inventory correction at some of its customers is temporary and anticipate strong RFIC growth trends will continue through at least C2017.”
“In fact, 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 nonhandset related RFIC portfolio addressing the higher-margin defense & aerospace and networks infrastructure markets. Finally, as evidenced by the strong margins achieved in Q1/F’16, we believe Qorvo can continue to leverage cost synergies through consolidating fab facilities, optimizing R&D expenditures, and eliminating duplicate costs.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst T. Michael Walkley has a total average return of 19.0% and a 59.9% success rate. Walkley has a -21.7% average return when recommending QRVO, and is ranked #23 out of 3734 analysts.
Out of the 9 analysts polled by TipRanks, 8 rate Qorvo Inc stock a Buy, while 1 rates the stock a Hold. With a return potential of 54.5%, the stock’s consensus target price stands at $90.31.