KeyBanc Breaks Down the Bull Thesis on Qorvo Inc (QRVO)

KeyBanc analyst John Vinh reiterated a Sector Weight rating and $80.00 price target on Qorvo Inc (NASDAQ: QRVO).

The analyst commented: "Bull Case Would Consist of Integrated Module Win at AAPL and 50% GM; We recently hosted investor meetings with QRVO management and left incrementally more constructive in the Company's ability to recover from ~$350M in Android headwinds over the next few years via potential share gains in integrated modules at AAPL and a return to 50% GM by FY27. Key takeaways from our meetings include: 1) $350M in Android exits expected over the next two fiscal years in China Android and Samsung, but SD% growth in ACG is expected in FY27 via content growth in the iPhone 18; 2) 10% content growth expected in the iPhone 17 mostly driven by ET PMICs, which should remain a tailwind as AAPL's internal modem mixes higher over the next several generations of iPhone; 3) Mix and operational improvements expected to drive a path to 50% GM by FY27. Assuming QRVO is able to execute across all these initiatives would imply FY27 (Mar) revs/EPS of $4.1B/ $8.50, which at a 14x multiple would imply fair value of $120. Despite compelling risk/reward, we remain Sector Weight and await further indications of QRVO being able to secure integrated module wins at AAPL and continued improvements on GMs."

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 $78.58 yesterday.

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