Skyworks: This Analyst Just Reiterated 'Buy'

In a report published Friday, Brean Capital analysts maintained a Buy rating on

, with a price target of $110. Skyworks Solutions reported robust quarterly results, while guiding to a 130bps expansion in its 3Q gross margins. An improvement in the company's mix of higher margin integrated solutions enabled it to report flat margins despite a 5 percent decline in the revenues during the March ended quarter. "While operating margins were down slightly to 34% off SWKS' all-time high of 35.1% in December due to seasonality of the top line, we remain confident in SWKS' ability to increase operating leverage going forward on minimal $1.5-$2M increases in R&D spend per quarter," the analysts mentioned. The company's growth prospects continue to be driven by its ability to expand the SWKS content across its mobile and non-mobile customer base. "We believe the GS6 includes Skyworks' high-end integrated front-end module, SkyOne Ultra, as well as their new Diversity Receive module. The content in the GS6 is representative of the Company's bigger narrative for this year, which is driving revenue on incremental content gains through integrated modules. We believe part of the Company's strategy involves gaining share by integrating analog components," the analysts stated. The EPS estimates for FY15 and FY16 have been raised from $4.94 to $5.12 and from $5.56 to $6.18, respectively.