Sterne Agee Sees Dip In Skyworks Solutions Inc As A Buying Opportunity

Shares of

were trading lower by more than 6 percent Wednesday afternoon. The decline in share price has prompted

of Sterne Agee to recommend buying shares. “Skyworks Solutions is off today and we are buyers,” Rakesh wrote in a note to clients. The analyst sees weakness in the name as related to some general profit taking, as well as a DigiTimes article which did "not break news." Rakesh noted that Skyworks Solutions, along with other companies in the space have been “conservative” on the China builds and the large iPhone 6 and iPad builds position for upside. Looking forward, Skyworks Solutions has several major catalysts approaching, including an October 21 iPad launch, strong 4G ramps with China iPhone launch into October 17 and an earnings release at the end of October. Shares were reiterated with a Buy rating and $60 price target, which represents a roughly 15.8 multiple of fiscal 2015 estimated earnings per share of $3.81.