Skip to main content

Market Overview

Bank Of America Upgrades Qorvo, But Projects Limited Upside

Bank Of America Upgrades Qorvo, But Projects Limited Upside

Qorvo Inc (NASDAQ: QRVO)'s fiscal third-quarter earnings may have disappointed some investors, but the company's announcement of a significant design win for its integrated power-amp-duplexer, or SuperPAD, in Apple Inc. (NASDAQ: AAPL)'s upcoming iPhone turned one Wall Street analyst incrementally more positive on Qorvo.

The Analyst

Bank Of America's Vivek Arya upgraded Qorvo's stock rating from Underperform to Neutral with a price target boosted from $60 to $85.

The Thesis

Qorvo's confirmation of the Apple win could not only reaccelerate its sales in the bottom half of 2018, but prompt rival smartphone manufacturers like Samsung to become customers in 2019 and beyond, Arya said in the upgrade note.

But investors should balance Qorvo's Apple win with its past execution record and the "complexity" associated with manufacturing the new SuperPAD components, which could weigh on margins, the analyst said. There are no guarantees that Qorvo will be remain a key Apple supplier indefinitely — and the company did see a partial loss of the content in current generation iPhones, Arya said. 

Some Wall Street analysts are expressing concern that iPhone's demand trends aren't as strong as investors hoped, the analyst said. BofA's $85 price target is based on a 16x 2018 P/E, which is already at the top end of the stock's 8x to 16x historical multiple.

Price Action

Shares of Qorvo hit a new multiyear high of $85.24 Thursday morning and were last seen trading at $81.57, up nearly 14 percent on the day.

Related Links:

Oppenheimer Lowers Apple Supplier Estimates On Weak iPhone Projections

Piper Jaffray Downgrades Finisar; Apple Suppliers Down On iPhone X Production Concerns

Photo courtesy of Apple. 

Latest Ratings for QRVO

Feb 2021CitigroupMaintainsNeutral
Feb 2021BenchmarkMaintainsBuy
Feb 2021Craig-HallumMaintainsBuy

View More Analyst Ratings for QRVO
View the Latest Analyst Ratings


Related Articles (QRVO)

View Comments and Join the Discussion!

Posted-In: Apple Suppliers Apple Supply Chain Bank of America iPhoneAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

FSRMorgan StanleyMaintains40.0
MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
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