PacCrest Reiterates Qorvo At 'Overweight'

In a report published Tuesday, Pacific Crest Securities analysts maintained an Overweight rating on Qorvo Inc QRVO, with a price target of $80, ahead of the company's earnings report.

"We see a favorable risk/reward ahead of earnings and would be opportunistic buyers of QRVO," the analysts said. Qorvo share price has plunged 12.8 percent so far this quarter, versus a 1.3 percent gain in the SOXX. Following the downturn, the company's share price already reflects:

1. Weakness in smartphone demand in China
2. Market share loss in Samsung's GS6 to Skyworks Solutions Inc SWKS
3. Improved positioning on MediaTek’s second-generation LTE SoC, which is ramping this quarter

The analysts expect Qorvo to announce in-line results and guidance. However, there could be significant improvement in the company's fundamentals in 2H15, with content gains expected at Apple Inc AAPL of over 10 percent and Qorvo could benefit from "the ramp of LTE, as it will be fully ramped at MediaTek."

"Longer term, we continue to believe Qorvo remains extremely well positioned to benefit from increasing content opportunities from RF complexity and the shift to LTE," the report mentioned, while adding that there could be "outsized earnings growth" from more than $150 million in cost synergies from the merger of TriQuint Semiconductor TQNT and RF Micro Devices, Inc. RFMD.