Buy Skyworks (SWKS) on Weakness, Fears Overdone - Analyst
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Price: $69.62 -0.2%
Rating Summary:
19 Buy, 26 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 26 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Oppenheimer reiterated its Outperform rating and $32 price target on Skyworks Solutions (NASDAQ: SWKS) saying concerns are overdone and to buy the weakness.
After a meeting with the CEO this week, the firm came away "feeling stronger that investor fears post-Skyworks’ analyst day are overdone." They see the company delivering on Sept. and Dec. consensus targets.
While expectations ran too far on Apple enthusiasm, sentiment has now pulled back too far on fears, the firm said.
"We feel strongly there isn't a competitive or execution issue to blame," they said. "Complete teardowns show Skyworks gained meaningfully on the iPhone 5. Guidance, however, reflects the realities of market weakness elsewhere, which investors didn't budget in as comprehensively. We still believe Skyworks' multiples will be pressured by growing customer concentration (vs. previous levels), but our overall positive take on TAM expansion and share gains is unchanged. We'd be buyers following the pullback."
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 $23.18 yesterday.
After a meeting with the CEO this week, the firm came away "feeling stronger that investor fears post-Skyworks’ analyst day are overdone." They see the company delivering on Sept. and Dec. consensus targets.
While expectations ran too far on Apple enthusiasm, sentiment has now pulled back too far on fears, the firm said.
"We feel strongly there isn't a competitive or execution issue to blame," they said. "Complete teardowns show Skyworks gained meaningfully on the iPhone 5. Guidance, however, reflects the realities of market weakness elsewhere, which investors didn't budget in as comprehensively. We still believe Skyworks' multiples will be pressured by growing customer concentration (vs. previous levels), but our overall positive take on TAM expansion and share gains is unchanged. We'd be buyers following the pullback."
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 $23.18 yesterday.
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