Skip to main content

Market Overview

Buy Broadcom, Cirrus Logic, Skyworks Amid Meaningful Improvement In iPhone Inventories

Buy Broadcom, Cirrus Logic, Skyworks Amid Meaningful Improvement In iPhone Inventories

Pacific Crest analysts remain buyers of Broadcom Ltd (NASDAQ: AVGO), Cirrus Logic, Inc. (NASDAQ: CRUS) and Skyworks Solutions Inc (NASDAQ: SWKS) amid meaningful improvement in iPhone inventories due to aggressive promotion by Apple Inc. (NASDAQ: AAPL).

The brokerage's "carrier surveys in North America and Western Europe indicate improvement in both sell-through and inventory management."

"With iPhone 6s inventories trending to the lower end of the targeted range, we see significantly less risk of an inventory correction ahead of the iPhone 7 ramp," analyst John Vinh wrote in a note.

BOGO Deals Deliver

The reduction in inventories was attributed to the return of BOGO (buy-one-get-one) promotions in May, resulting in substantial improvement in iPhone 6s sell-through and inventories. The promotions brought down store inventories to the lower end of the targeted range of 6–10 days.

Related Link: This Firm Just Lowered Apple's Price Target To $138; "Gold Stock Trying To Maintain Its Shimmer"

In addition, Vinh sees risk of a SAMSUNG ELECTRONIC KRW5000 (OTC: SSNLF) GS7 inventory correction, albeit more moderate, given unprecedented promotions.

The analyst said, "In May, T-Mobile US Inc (NASDAQ: TMUS) resumed its BOGO promotions with the rest of the carriers, which kept inventories largely stable on a m/m basis. Additionally, Samsung has resumed its free VR headset promotion in conjunction with carriers running BOGO."

"With GS7 inventories increasingly modestly, despite unprecedented promotional activity, we still see increased risk of an inventory correction," Vinh noted.

Vinh has an Overweight rating on Broadcom, Cirrus Logic and Skyworks, with price targets of $185, $40 and $90, respectively.

At the time of writing, shares of Broadcom were down 0.09 percent at $162.43, Skyworks were down 0.62 percent at $66.52 and Cirrus shares were up 1.97 percent at $36.72.


Related Articles (SSNLF + TMUS)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Price Target Reiteration Analyst Ratings Movers Tech

Latest Ratings

SCYXAegis CapitalMaintains40.0
ARGOBoenning & ScattergoodDowngrades
TLSAZacks Investment ResearchInitiates Coverage On7.5
TOTJP MorganUpgrades
WSOMorgan StanleyMaintains244.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at