The Trend In Manufacturing Spending Is Good News For Skyworks
Technical discussions during the Mobile World Congress underline the growth outlook in spending on radio frequency components in mobile phones, even in the high-end models at Apple Inc. (NASDAQ: AAPL) and Samsung (OTC: SSNLF), Charter Equity’s Edward Snyder said in a report.
Trends Benefit Skyworks
“Where we expected spending to slow as the high-end models pulled in most of the advanced features of LTE [Long-Term Evolution], we’re now seeing first signs of 5G (LTE-U), MIMO [multiple input, multiple output] for cellular, Power Class 2, and a host of enhancements to six-mode 4G models to improve performance,” Snyder wrote.
Although most of this continues to be focused on filters, an increasing percentage of the new spending would likely be in non-filter technologies, which is a beneficial trend for Skyworks, “given its strength in many of these areas and its industry-leading execution” the analyst noted.
Many of the OEM design engineers have indicated the high quality of Skyworks’ execution and the company’s performance on new designs.
“Strong customer relationships and greater clarity on 4G phone road maps for the next two years improve our visibility on revenue growth and increase our confidence in Skyworks’ ability to exceed the rate of RF TAM growth,” Snyder said.
Analyst: The Top Tech Stock Isn't Apple, Alphabet Or Amazon - It's Skyworks Solutions
Image Credit: By © Raimond Spekking / CC BY-SA 4.0 (via Wikimedia Commons), CC BY-SA 4.0, via Wikimedia Commons
Latest Ratings for SWKS
|Apr 2017||Pacific Crest||Upgrades||Sector Weight||Overweight|
|Mar 2017||Macquarie||Initiates Coverage On||Outperform|
|Mar 2017||Wells Fargo||Initiates Coverage On||Outperform|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.