Hold Rating Maintained as Steady Apple Demand Offsets Margin Pressure and Merger Timing Risks

In a report released yesterday, Krish Sankar from TD Cowen maintained a Hold rating on Skyworks Solutions, with a price target of $65.00.

Krish Sankar gave his rating based on several factors including a modest beat on recent results that didn’t change the longer‑term trajectory materially. Strength with Apple, where blended content is now expected to stay steady despite earlier share loss fears, removes a major downside risk, and encouraging signals from Wi‑Fi, automotive, and data‑center demand provide incremental support.
However, the cost profile remains stubborn: gross margins are set to fall sequentially because of mix shifts toward Android, operating expenses keep climbing as R&D spending persists, and earnings estimates for CY26 have inched down. With the price target reset to $65 (roughly 15–16x CY26 EPS) and the key catalyst being the QRVO/SWKS merger closing no sooner than early CY27, Sankar sees limited near‑term upside, justifying the Hold stance while flagging risks if the merger slips or customer concentration issues reemerge.

In another report released yesterday, Mizuho Securities also maintained a Hold rating on the stock with a $60.00 price target.