Skyworks Solutions: 5 Reasons To Stay Positive Offered By Bank Of America

Shares of Skyworks Solutions Inc SWKS closed up less than 1 percent on Thursday. In a report issued Wednesday, analysts at Bank of America raised their price objective from $95 to $110 and offered "five reasons to stay positive" and reiterated a Buy and a Top Pick rating on the stock.

The motives to remain optimistic are:

• 1) "Upside to estimates on expanding RF TAM." The management targets long-term EPS of $7, versus BOAML's estimate of $5.98 per share and the Street's $5.65 per share for 2016.
• 2) "New product pipeline and content at Samsung GS6 and Apple Watch."
• 3) "M&A as next potentially positive catalyst given solid unlevered balance sheet," and operational excellence (the company (ranks at the top of every growth and execution metric in BOAML's scoreboard).
• 4) "Underappreciated dominance in emerging internet-of-things," like set to boxes, wearable devices and fitness trackers. The firm estimates TAM could reach approximately $10 billion.
• 5) "Recent inclusion in the S&P 500 index," which could make it more attractive to investors and provide it with wider visibility.