Needham & Company Trims PT on Qorvo (QRVO) to $54 Following Light Q1 Outlook

Needham & Company reaffirms Qorvo, Inc. (Nasdaq: QRVO) with a Buy rating and lowers its price target by $1 to $54 following FQ316 results reported this week, which were inline with the company's January 7th pre-announcement.

Analyst N. Quinn Bolton said, ...citing lower smartphone build rates and a shift in timing in the launch of a flagship smartphone platform at a major customer, management guided F4Q16 (March) revenue below the level indicated on January 7. Though we are disappointed, we are not entirely surprised by the conservative near-term outlook. On a positive note, management expressed confidence the company would increase dollar content on flagship smartphone programs at its three largest OEM customers in CY16. Given the higher dollar content, management expects strong growth in F2H17.

Bolton also commented, MP revenue was $489 million in F3Q16, down 15% Q/Q from $578 million in F2Q16. Revenue from Apple was ~$261 million in F3Q16 (42% of total) down from ~$291 million in F2Q16 (41% of total). Non-Apple MP revenue declined to ~$228 million in F3Q16 from ~$287 million in F2Q16, or ~21% Q/Q. We attribute the vast majority of this decline to inventory reductions in the China market.

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

You May Also Be Interested In

• OncoCyte Corp (OCX) PT Raised to $4.25 at Needham
• HSBC Downgrades Anglo American Platinum Limited (AMS:SJ) (ANGPY) to Reduce
• Amphenol (APH) PT Raised to $130 at Evercore ISI, Remains Top Pick