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D.A. Davidson Explains What Is Working For Skyworks

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Skyworks Exceeds Expectations, Evolves Away From iPhone-Dependence

Shares of Skyworks (NASDAQ: SWKS) are ticking higher following strong quarterly results and even better guidance.

D.A. Davidson analyst Thomas Diffely boosted his price target on the stock to $65.00 and reiterated a Buy rating.

Explaining strength in Skywork’s business, Diffely wrote, “The core PA business is ramping due to Apple’s (AAPL - $93.09) upcoming iPhone 6 launch, ongoing 4G LTE buildout in China and even 3G upgrade cycles in some emerging economies… The Integrated Mobile business is benefiting from broad-based content gains and rising device complexity, and the ongoing adoption of 802.11ac. Finally, the proliferation of connectivity (Internet of Things - IoT) continues to drive the high margin Broad Markets segment.”

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Diffely now thinks that the robust strength in Skywork’s business will allow the company to earn an annual $5.00 per share in the next couple years.

The $65 price target is based on 15 times 2015 earnings plus net cash.

Shares of Skyworks were last trading at $50.22, up 8.39 percent.

Latest Ratings for SWKS

DateFirmActionFromTo
Apr 2017Pacific CrestUpgradesSector WeightOverweight
Mar 2017MacquarieInitiates Coverage OnOutperform
Mar 2017Wells FargoInitiates Coverage OnOutperform

View More Analyst Ratings for SWKS
View the Latest Analyst Ratings

Posted-In: DA Davidson Thomas DiffelyAnalyst Color Price Target Analyst Ratings

 

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