Mizuho upgrades Skyworks and Qorvo after merger announcement

Investing.com -- Mizuho upgraded Skyworks Solutions (NASDAQ: SWKS) and Qorvo (NASDAQ: QRVO) to Neutral following their planned merger, saying the deal provides “some valuation synergies” despite ongoing headwinds in the handset market.

In a note to clients, Mizuho said the merger is expected to close in April 2027 and deliver about “$500 million annual cost synergies by C28–29E.”

Analysts led by Vijay Rakesh stated that the combined company “would position the combined entity as the largest global RF player (>25% share), surpassing QCOM.”

For Skyworks, Mizuho raised its price target to $73 from $65, noting that “our back-of-envelope (BoE) analysis implies SWKS’s pro-forma F27E EPS at $5.83, which at ~14x 2-year forward P/E, implies a fair value of ~$82/share by FY27E.”

However, it cited several challenges, including “50–60% exposure to AAPL,” competition from “domestic RF China players,” and “CY26E iPhone sales could decline ~7% y/y.”

Mizuho also lifted Qorvo to Neutral from Underperform and raised its price target to $93 from $75. It told investors that the merger “implies a ~$103/share value,” though it applied a “~10% China regulatory approval discount” to reflect potential delays.

While Mizuho believes the transaction “provides near-term support,” it warned that “synergies are expected to fully materialize only by C28–29E,” and that “handset and China headwinds remain medium-term risks.”

The firm added that analog market “green shoots” and a potential rebound in the second half of 2026 could provide some offset to the current softness in smartphone demand.

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