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Skyworks (SWKS) Buy Rating Reiterated at Pacific Crest

April 27, 2015 2:13 PM EDT
Get Alerts SWKS Hot Sheet
Price: $108.32 +0.40%

Rating Summary:
    27 Buy, 18 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Pacific Crest earlier maintained an Outperform rating on Skyworks Solutions (NASDAQ: SWKS) with a price target of $110. Analyst John Vinh expects beat/raise results in FQ2, despite Samsung concerns.

Vinh explained, "Last week's earnings results from key Samsung suppliers, Synaptics and Maxim, fell short of expectations given the ramp of the GS6 fueling concerns regarding Samsung demand trends. Despite consternation, we remain confident of Skyworks' ability to exceed expectations given content gains from the ramp of SkyOne Ultra in the GS6. In contrast to Skyworks, we also note that neither Synaptics (Nasdaq: SYNA) or Maxim (Nasdaq: MXIM) benefited from any content increases from the GS5 to the GS6"

"Near term, we are most confident in Skyworks' ability to expand gross margins, as the ramp of SkyOne modules could be accretive to the company's gross margins. Additionally, we believe the inclusion of filters in SkyOne and growth in 2015 should drive continued margin expansion given the removal of any margin stacking from its prior reseller arrangement with Panasonic. We anticipate Skyworks will achieve its 50% long-term model target this year," added the analyst.

For an analyst ratings summary and ratings history on Skyworks Solutions click here. For more ratings news on Skyworks Solutions click here.

Shares of Skyworks Solutions closed at $93.39 yesterday.



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