Qorvo Inc (QRVO) PT Raised to $215 at Mizuho Securities, Lowers June Qtr Estimates

Mizuho Securities analyst Vijay Rakesh raised the price target on Qorvo Inc (NASDAQ: QRVO) to $215.00 (from $183.00) while maintaining a Buy rating but lowered June quarter estimates after hosting a call with an industry expert from a leading, Tier-1 China handset OEM. Key takeaways include:

1) JunQ revenue guides from the handset RF/processor suppliers (SWKS, QRVO, QCOM) could be ~5% below consensus given component supply shortages and the Austin fab driving weaker Samsung handset shipments.

2) Don't expect any price cuts in handset components, as foundry capacity is non-existent with handset OEMs focused on hoarding any available component supply in anticipation of 2H shortages.

3) We have adjusted our JunQ estimates lower for SWKS/QRVO/QCOM, and we expect a stale consensus to move down. We also expect a 2H rebound, and we are raising our PT for SWKS and QRVO. The risk to a bullish 2H handset outlook is that 2H component shortages could exacerbate.

"For QRVO, we are lowering JunQ from $1.0B/$2.16 to $976M/$2.04 (cons. $997M/$2.15), raising F22E from $4.5B/$9.93 to $4.5B/$10.39 also on a stronger C2H21E, stable pricing and better Opex. Our F23E goes from F23E from $4.7B/$11.16 to $4.8B/$11.41. Raising our QRVO PT to $215 (prior $183) ~20.7x our F22E EPS, still conservative versus the SOX at ~23x P/E."

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