Skyworks Solutions Remains A Top Pick Into 2015, Says Oppenheimer


Oppenheimer analyst Rick Schafer reiterated an Outperform rating on Skyworks Solutions (NASDAQ:SWKS) with a $65 price target, following the company’s F4Q earnings results.

Schafer noted, “We attribute the upside momentum to a combination of robust unit sales and content increases on the iPhone 6; increased China local brand handset penetration; and general broad market strength. The Street now expects F4Q/1Q sales/EPS of $714M/$1.07 and $728M/$1.08, respectively. We see modest upside to F1Q’s outlook, as multiple LTE ramps, deepening 802.11ac penetration and IoT opportunities give SWKS sustained top-line growth beyond the December quarter. GM and FCF look poised to improve further, and SWKS’ 40% targeted FCF payout should bolster shareholder returns. SWKS remains a top pick into 2015.”

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 13.3% and a 73.2% success rate. Schafer has a 51.7% average return when recommending SWKS, and is ranked #327 out of 3363 analysts.

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