Qorvo Inc’s (QRVO) Recent Underperformance is Opportunity for Accumulation: Brean Capital
In a research report released Friday, Brean Capital analyst Mike Burton reiterated a Buy rating on shares of Qorvo Inc (NASDAQ:QRVO) with a price target of $80, which implies an upside of 57% from current levels. The analyst discussed why the recent pullback in shares of Qorvo could be a great entry point.
Burton emphasized that “Qorvo has underperformed following conference presentations and the announcement last week that they completed their $400M share repurchase program in less than a month.” The analyst believes the pullback in the shares reflect some short-term concerns regarding Street estimates for the December Quarter, and (ironically) the recent completion of its buyback program.”
“We do not believe the long-term story of increasing RF content and increasing profitability at QRVO has changed and would be using the near-term weakness to accumulate the stock as both short-term issues will likely be resolved when the company reports earnings,” the analyst noted.
Furthermore, “We are also taking the recent weakness as an opportunity to review our model to account for 1) QRVO’s commentary about more flattened seasonality, 2) the share buyback, and 3) changes in our model regarding OPEX and stock-based comp.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mike Burton has a total average return of 11.1% and a 51.7% success rate. Burton has a -27.6% average return when recommending QRVO, and is ranked #431 out of 3771 analysts.
Out of the 11 analysts polled by TipRanks, 10 rate Qorvo stock a Buy, while 1 rates the stock a Hold. With a return potential of 62%, the stock’s consensus target price stands at $82.60.