Canaccord Shines Light on Qorvo Inc (QRVO) Following Investor Day

In a research report released today, Canaccord analyst Michael Walkley reiterated a Buy rating on shares of Qorvo Inc (NASDAQ:QRVO), with a $77 price target, after attending Qorvo’s investor day today in New York, where management updated long-term financial objectives for mobile products to grow faster than the 10-15% broader RF market growth rate over a 3-5 year period.

Walkley wrote, “We believe the growth objective is achievable despite slowing smartphone growth. For C2016, management anticipates achieving its 50% gross margin and 30% operating margin targets that are consistent with our model. Updated longer-term financial targets include 50-55% gross margin and 32-35% operating margins, and our F2018 estimates are at the low end of these ranges. We believe Qorvo has a broad RFIC portfolio for the mobile device market and is well positioned to benefit from 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. We also believe Qorvo can continue to leverage cost synergies through consolidating fab facilities, optimizing R&D expenditures, and eliminating duplicate costs.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Walkley has a total average return of 16% and a 59.9% success rate. Walkley has a -23.2% average return when recommending QRVO, and is ranked #18 out of 3847 analysts.

Out of the 15 analysts polled by TipRanks, 11 rate Qorvo stock a Buy, while 4 rate the stock a Hold. With a return potential of 38%, the stock’s consensus target price stands at $75.46.


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