Needham & Company Not Throwing In the Towel on Qorvo (QRVO)

Needham & Company analyst N. Quinn Bolton lowered estimates and his price target on Qorvo Inc (NASDAQ: QRVO) to $62.00 (from $63.00) but said they aren't throwing in the towel and maintained a Buy rating.

Bolton commented, "QRVO reported better than expected F2Q17 topline results that were overshadowed by yield issues that negatively affected gross margin and the bottom line. Guidance for next quarter also fell short of consensus expectations on China weakness and margin pressures. Management laid out a detailed plan to get NG GM back above 50% exiting FY18, which includes a 100-200 bps improvement in F3Q17 (Dec). Despite the near-term yield and execution issues, we are encouraged by the company's revenue performance and growth prospects and believe management will ultimately be able to fix the margin issues over the next several quarters as new marquee smartphone platforms ramp. We have lowered our near-term EPS estimates and reduced our PT to $62 from $63. Maintain Buy."

For an analyst ratings summary and ratings history on Qorvo Inc click here. For more ratings news on Qorvo Inc click here.

Shares of Qorvo Inc closed at $56.74 yesterday.

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