In a report released today, Vivek Arya from Bank of America Securities maintained a Sell rating on Skyworks Solutions, with a price target of $70.00.
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Vivek Arya has given his Sell rating due to a combination of factors impacting Skyworks Solutions. One of the primary concerns is the company’s limited growth potential in the challenging consumer semiconductor market, which is compounded by its high exposure to Apple. The proposed merger with Qorvo, while potentially beneficial in the medium term, introduces uncertainty regarding regulatory approval and limits Skyworks’ ability to execute its share buyback program effectively.
Additionally, despite some positive developments such as strong Wi-Fi 7 adoption and record automotive revenues, these are not sufficient to offset the pressures from competitive dynamics and customer concentration risks. The company’s reliance on Apple, which accounts for a significant portion of its revenue, poses a risk due to fierce competition and pricing pressures. Overall, these factors contribute to the underperformance rating and a price objective of $70, reflecting a cautious outlook on Skyworks’ near-term prospects.
In another report released yesterday, Mizuho Securities also maintained a Sell rating on the stock with a $65.00 price target.