The 5G iPhone is coming, and one Wall Street analyst thinks it will be a big catalyst for Apple Inc AAPL and iPhone supplier Skyworks Solutions Inc SWKS.
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.
Caso said concerns about problems with the Intel Corporation INTC 5G modem derailing Apple’s 2020 iPhone launch are no longer relevant following Apple’s settlement with QUALCOMM, Inc. 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.
Apple shares traded around $203.35 at time of publication, while Skyworks shares traded around $80.31.
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