DA Davidson Reiterates a 'Buy' on Skyworks Solutions (SWKS); iPhone Rumors Continue: Risks Fading

DA Davidson reiterates a 'Buy' on Skyworks Solutions (NASDAQ: SWKS) price target of $30.00.

DA analyst says, "Skyworks may be a net winner from upcoming iPhone update. While speculation continues as to when and what the next version of the iPhone may look like, early leaks of what appears to be an updated iPhone 4 (iPhone 4S) show a couple of TriQuint (Nasdaq: TQNT)(BUY) parts, Avago (Nasdaq: AVGO)(BUY) parts and a PA from Skyworks. This would be the layout we believe most investors had been thinking for the iPhone 5. However, if we do not see a new form-factor iPhone (iPhone 5) and only see an iPhone 4S then it is possible that the current iPhone 4 moves to the $99 price point replacing the iPhone 3GS. In that scenario, assuming all of the current RF remains consistent, we believe Skyworks would be a net winner especially if this phone turns out to be the pre-paid phone many have been speculating. We believe Skyworks’ content in the iPhone 4 is ~$3."

"We believe shares remain attractive. With fears of a shut out on new Apple (Nasdaq: AAPL) products starting to subside and with near term revenue growth still on track, we believe Skyworks shares remain attractive. While we worry about aggressive pricing in certain markets within the power amplifier market, we believe Skyworks has a diversified offering and should weather the storm better than most."

For more ratings news on Skyworks Solutions click here and for the rating history of Skyworks Solutions click here.

Shares of Skyworks Solutions closed at $21.92 yesterday.

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