DA Davidson Downgrades TriQuint Semiconductor (TQNT) to Neutral; Buyer Beware: Risks Ahead; iPhone 4S Sockets Not A Surprise

DA Davidson downgraded TriQuint Semiconductor (NASDAQ: TQNT) from Buy to Neutral with a price target raised from $7 to $8.

DA analyst says, "TQNT shares closed at $7.39, up $1.46 or 24.62%, on news that the latest Apple (Nasdaq: AAPL) iPhone, the 4S, will include two TriQuint parts, with one being identified as the TQM9M9030, a multi-mode quad-band power amplifier (we believe this could be for the CDMA portion of the phone). Online repair shop iFixit dissected the device one day before the official launch and found internal content from TriQuint along with Qualcomm (Nasdaq: QCOM)(BUY), Skyworks (Nasdaq: SWKS)(BUY) and Avago (Nasdaq: AVGO)(BUY). The highly anticipated iPhone 4S is expected to sell close to 3 million units in the first weekend could drive ~100 million units over the next year. While we are encouraged by TriQuint’s socket wins on a high volume phone and the fact that we are seeing TriQuint integrate a high number of bands into a two PAs, we do not believe dollar content is higher than $3 for TriQuint. The strong move in share price was due to some skeptics assuming that TriQuint was completely shut out given their recent preannouncement. We would note that we believe lead times with Apple’s contract manufacturer, Foxconn, are short and therefore we don’t expect significant iPhone 4S revenue in the September quarter."

For more ratings news on TriQuint Semiconductor click here and for the rating history of TriQuint Semiconductor click here.

Shares of TriQuint Semiconductor closed at $7.39 yesterday.

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