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
Date | Firm | Action | From | To |
---|---|---|---|---|
Feb 2021 | RBC Capital | Assumes | Outperform | |
Jan 2021 | DA Davidson | Maintains | Buy | |
Jan 2021 | Deutsche Bank | Maintains | Buy |
View More Analyst Ratings for AAPL
View the Latest Analyst Ratings
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