Oppenheimer Top Analyst Weighs in on Skyworks Solutions Inc (SWKS) Following Meetings with Management

Oppenheimer’s top analyst Rick Schafer was out with a research note on shares of Skyworks Solutions Inc (NASDAQ:SWKS), reiterating an Outperform rating with price target of $100, after hosting two days of meetings with management this week. Shares of Skyworks closed yesterday at $77.02, up $4.62 or 6.38%.

Schafer noted, “We came away incrementally impressed with SWKS’ position in both its core mobile and broad markets/IoT segments. Broad markets remains on track to grow nearly 20% this year, while wireless appears to have shaken off the iP6s inventory drag. We expect above seasonal Q/Q revenue growth in F1Q (Dec) as content gains in the iP7 take root and a return to Y/Y growth in F2Q (Mar). Known for operational efficiencies (GM/ OM 51%/37%, respectively), management believes they can squeeze more costs out, in addition to incremental revenue falling through at ~58% vs 51% corporate average. We expect this to allow OM to reach 40% in CY17. We believe SWKS remains misunderstood/mis-priced and like the long-term set up. We remain buyers here.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rick Schafer has a yearly average return of 14.3% and a 69% success rate. Schafer has a 27.2% average return when recommending SWKS, and is ranked #21 out of 4158 analysts.

Out of the 21 analysts polled by TipRanks, 15 rate Skyworks shares a Buy, 4 rate the stock a Hold and 2 recommend a Sell. With a return potential of 8.7%, the stock’s consensus target price stands at $83.73.


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