Oppenheimer Remains On The Sidelines With Qorvo Inc (QRVO) Following Analyst Day
In a research report released Wednesday, Oppenheimer analyst Rick Schafer reiterated a Perform rating on shares of Qorvo Inc (NASDAQ:QRVO), after attending Qorvo’s packed-house Analyst Day Tuesday in New York City. Shares of Qorvo closed today at $56.34, up $1.60 or 2.92%.
Schafer noted, “Management tone was decisively bullish, consistent with the company’s earnings call two weeks ago. Recent headwinds (China handset and wireless BST) have apparently abated, and mgmt continues to believe QRVO can grow the top line by greater than 10-15% annually as industry dynamics drive increased RF complexity/content. QRVO believes its mobile TAM will grow at a ~14% CAGR through 2019 to ~$17B, supporting our early innings view of the content-driven “RF Boom” cycle.”
“A key question left unanswered, however: iPhone demand this quarter. Conflicting datapoints from the Apple supply chain over the past month have investors questioning December-quarter iPhone sell-through and what the implications are for March-quarter units. Outside of wireless (~80% of sales), Industrial and Defense appears strategically important to QRVO, as mgmt leverages advanced R&D (GaN, Optics) into its mobile segment.” the analyst continued.
Bottom line, “QRVO is a clear beneficiary of the rising RF tide, though we believe execution remains key and continue to prefer fellow RF heavyweights SWKS and AVGO here.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rick Schafer has a total average return of 22.1% and a 74.7% success rate. Schafer has a average return when recommending QRVO, and is ranked #9 out of 3849 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 34%, the stock’s consensus target price stands at $75.46.