Analyst Sees iPhone Content Gains For Avago Technologies Ltd.

Avago Technologies Ltd.

will be among companies benefitting from upcoming versions of the iPhone, an analyst said Tuesday. Barclay's Blayne Curtis reinstated coverage of Avago with an Overweight rating and called it a "top idea" among radio frequency semiconductor companies. Industry trends favor Avago products; its shares are relatively cheap and the company is pursuing a "proven" acquisition strategy, according to Curtis. Singapore-based Avago last year said aggregate sales to Apple Inc.

accounted for more than 10 percent of its revenue. Curtis estimated that Avgo's content contribution to Apple's iPhone 6S, expected in 2016, will be flat to down. Vendor decisions for the 6S were made earlier this year, according to Curtis, with content gainers likely including Qorvo Inc.

and Skyworks Solutions Inc.

. But the analyst sees a gain of 20 percent to 30 percent in Avgo's content contribution to the iPhone 7, expected in 2017. Vendor decisions on the iPhone 7 will be made in the first quarter of next year, and along with Ago, Curtis expects Qorvo will see significant content gains.