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Needham Thinks Skyworks Solutions’ Stock is Going to Recover


In a report released today, Quinn Bolton from Needham reiterated a Buy rating on Skyworks Solutions (SWKS), with a price target of $99. The company’s shares closed yesterday at $83.40, close to its 52-week low of $79.27.

Bolton commented:

“Skyworks reported F4Q18 results modestly above guidance but provided F1Q19 guidance well below expectations due to a combination of weak premium handset unit shipments coupled with soft demand in China. Though we are disappointed by the lower guidance, we note Skyworks continues to increase dollar content in premium and mid-range smartphones, its Broad Markets business continues to grow at a DD annual rate, and the company is making progress in both 5G infrastructure and handsets. Further, SWKS has begun to sample internally developed BAW filters to lead customers. While FY19 is now likely to see only LSD growth, we expect revenue to reaccelerate in FY20 driven by the commercial ramp of 5G handsets. We reduce our forward estimates and PT to $99 from $118, but we reiterate our Buy rating due to SWKS’ compelling valuation.”

According to TipRanks.com, Bolton is a 5-star analyst with an average return of 14.3% and a 63.7% success rate. Bolton covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Quantenna Communications, and Integrated Device Tech.

Currently, the analyst consensus on Skyworks Solutions is a Moderate Buy with an average price target of $98.25, representing a 17.8% upside. In a report issued on November 2, Oppenheimer also assigned a Buy rating to the stock with a $120 price target.

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The company has a one-year high of $115.98 and a one-year low of $79.27. Currently, Skyworks Solutions has an average volume of 1.84M.

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Skyworks Solutions, Inc. engages in the design, development, and manufacture of proprietary semiconductor products. Its product portfolio includes amplifiers, attenuators, circulators, demodulators, detectors, diodes, directional couplers, front-end modules, hybrids, isolators, lighting and display solutions, mixers, modulators, optocouplers, optoisolators, phase shifters, synthesizers, power dividers and combiners, power management devices, receivers, switches, and technical ceramics. The company was founded in 1962 and is headquartered in Woburn, MA.