UPDATE: MKM Partners Initiates Coverage on Sky

by Eric Niederer, Benzinga Staff Writer

September 24, 2014 9:20 AM | 1 min read | Make a Comment

In a note released early Wednesday morning, MKM Partners analyst, Ian Ing initiated coverage of Skyworks Solutions

SWKS

with a Buy rating and a $68 price target. Ing listed three key factors driving his optimism for Skyworks

Panasonic FilterCo JV benefits to gross margin and technology
A clearer line of sight to smartphone opportunities
A "solid track record" of execution and operating model improvement

More specifically, Ing noted Skyworks 2/3 stake in FilterCo provides more than 100 bps gross margin accretion, it can see smartphone OEM opportunities two generations out compared to only the next generation a few years ago, and the company was able to increase its EPS from $3 to $5 earlier than expected.

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