Skip to main content

Market Overview

5G Adoption Bodes Well For Qorvo, Skyworks, Mizuho Says In Upgrade

5G Adoption Bodes Well For Qorvo, Skyworks, Mizuho Says In Upgrade

Apple Inc. (NASDAQ: AAPL) suppliers Skyworks Solutions Inc (NASDAQ: SWKS) and Qorvo Inc (NASDAQ: QRVO) have been getting a lot of love from Wall Street of late, primarily on the improving RF outlook.

The Analyst

Mizuho's Vijay Rakesh upgraded both Qorvo and Skyworks from Neutral to Buy. The analyst raised the Skyworks price target from $90 to $132 and Qorvo's from $80 to $125.

Takeaways On Qorvo, Skyworks 

RF suppliers Skyworks and Qorvo are in for meaningful upside on the basis of an improving 5G handset outlook and about 50-60% higher RF content per 5G handset relative to 4G handsets, Rakesh said in a Friday upgrade note. (See his track record here.) 

RF content per 5G handset is likely to see about 9% CAGR due to complexity and multiplexing, the analyst said. 

Rakesh sees the RF market getting a boost from multiple upcoming catalysts, including:

  • 3GSM slated for mid-February, which should result in multiple 5G handset launches
  • A Huawei settlement expected in the second half of 2020
  • Multiple Apple iPhone models that are expected to include 5G

"While RF suppliers SWKS and QRVO saw flat to declining revenues in 2018 and 2019 in a maturing handset market, we believe 2020E-21E should see a rebound as 5G requires an incremental 50%-60% increase in the RF content of handsets," Rakesh said. 

The upcoming 5G catalysts and attractive initial handset pricing could accelerate 5G adoption, driving upside to Mizuho's estimates as well as the consensus, the analyst said. 

Qorvo, Skyworks Price Action

Skyworks shares were adding 1.13% to $121 at the time of publication Friday, while Qorvo was advancing 2.72% to $115. 

Related Links:

7 Reasons Why Apple Is Staying On Needham's Conviction List In 2020

An Easy-To-Use Cheat Sheet For Apple Suppliers

Photo from Pixabay

Latest Ratings for QRVO

Feb 2021CitigroupMaintainsNeutral
Feb 2021BenchmarkMaintainsBuy
Feb 2021Craig-HallumMaintainsBuy

View More Analyst Ratings for QRVO
View the Latest Analyst Ratings


Related Articles (SWKS + QRVO)

View Comments and Join the Discussion!

Posted-In: 5G Huawei iPhoneAnalyst Color Upgrades Price Target Analyst Ratings Tech Best of Benzinga

Latest Ratings

IMRASVB LeerinkMaintains42.0
PASGChardan CapitalMaintains45.0
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