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Oppenheimer Thinks Skyworks Solutions’ Stock is Going to Recover


In a report released today, Rick Schafer from Oppenheimer maintained a Buy rating on Skyworks Solutions (SWKS), with a price target of $120. The company’s shares closed yesterday at $83.40, close to its 52-week low of $79.27.

Schafer said:

“Skyworks reported F4Q(Sept) results Thursday. Sales/EPS of $1.01B/$1.94 were just ahead of consensus $1.00B/$1.92. However, F1Q(Dec) outlook of $1.01B/$1.91 missed Street $1.07B/$2.08 impacted by softer iPhone units and China smartphone. Recently closed Avnera acquisition contributed $6M in the quarter and expected ~ $15M in F1Q. Management discussed long-speculated plans for in-house BAW, with production to ramp the next 12-18 months. We see this rounding out SWKS’ “tool-kit” ahead of 5G transition. We see SWKS content up DD(%) or ~$1.50 in iPhone refresh, though softer units appear to be muting growth. Capital allocation story remains intact as mgmt returned $1B+ to shareholders in FY18. SWKS remains positioned to benefit from rising RF content/complexity as the market moves to 5G. We’re lowering our price target from $120 to $110.”

According to TipRanks.com, Schafer is a 5-star analyst with an average return of 14.1% and a 65.2% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Texas Instruments, and Maxim Integrated.

Skyworks Solutions has an analyst consensus of Moderate Buy, with a price target consensus of $98.40, implying a 18.0% upside from current levels. In a report released today, Needham also reiterated a Buy rating on the stock with a $99 price target.

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Skyworks Solutions’ market cap is currently $14.99B and has a P/E ratio of 16.81. The company has a Price to Book ratio of 3.67.

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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.