Vivek Arya, an analyst from Bank of America Securities, reiterated the Sell rating on Qorvo (QRVO – Research Report). The associated price target was raised to $68.00.
Vivek Arya has given his Sell rating due to a combination of factors impacting Qorvo’s market position and future growth prospects. Despite some progress in mobile content and margin expansion, Qorvo faces significant challenges due to its high exposure to a stagnant smartphone market, which could be vulnerable to demand declines. The company’s content gains in the iPhone sector are overshadowed by potential declines in other areas, such as the low-margin Android business, which is under intense competitive pressure.
Moreover, Arya notes the lack of reaffirmation of previous sales guidance, indicating possible macroeconomic uncertainties affecting the company’s outlook. The heavy reliance on Apple, which constitutes a substantial portion of Qorvo’s sales, also raises concerns about future pricing pressures and market competition, particularly from Qualcomm. These structural challenges, coupled with macroeconomic uncertainties, underpin Arya’s decision to maintain a Sell rating on Qorvo’s stock.
QRVO’s price has also changed moderately for the past six months – from $100.480 to $62.650, which is a -37.65% drop .