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Apple, Skyworks Get Big Upgrades Ahead Of Potential 5G iPhone Cycle

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Apple, Skyworks Get Big Upgrades Ahead Of Potential 5G iPhone Cycle

The 5G iPhone is coming, and one Wall Street analyst thinks it will be a big catalyst for Apple Inc (NASDAQ: AAPL) and iPhone supplier Skyworks Solutions Inc (NASDAQ: SWKS).

The Analyst

Raymond James analyst Chris Caso upgraded Apple from Market Perform to Outperform and set a $250 price target.

Caso also upgraded Skyworks from Market Perform to Outperform and set a $90 target.

The Thesis

Caso said concerns about problems with the Intel Corporation (NASDAQ: INTC) 5G modem derailing Apple’s 2020 iPhone launch are no longer relevant following Apple’s settlement with QUALCOMM, Inc. (NASDAQ: QCOM). Opting to use the Qualcomm 5G model ensured Apple won’t be late to the game, Caso said.

In addition, recent checks suggest Apple will also be offering 5G on lower-priced iPhone models instead of only its high-end “Max” version of the device.

Caso said Skyworks is the biggest semiconductor winner from the 5G iPhone.

Raymond James is forecasting 5% to 10% iPhone unit growth in 2020, with 5G phones representing about 40% of the mix.

Price Action

Apple shares traded around $203.35 at time of publication, while Skyworks shares traded around $80.31.

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Latest Ratings for AAPL

DateFirmActionFromTo
Dec 2019MaintainsOverweight
Nov 2019ReiteratesBuy
Nov 2019MaintainsOverweight

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