Analyst Cody Acree of Benchmark Co. reiterated a Buy rating on Qorvo, boosting the price target to $125.00.
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Cody Acree has given his Buy rating due to a combination of factors that highlight Qorvo’s strong financial performance and strategic positioning. The company exceeded expectations in its fiscal first quarter, surpassing both consensus and its own guidance in terms of revenue, gross margin, and earnings per share. This strong performance is attributed to Qorvo’s effective execution across its diverse business segments, with notable improvements in its business with Apple and its ability to benefit from increased global defense spending.
Moreover, Qorvo’s strategic initiatives, such as divesting lower-margin businesses and consolidating factories, have contributed to significant gross margin expansion. Despite some macroeconomic and geopolitical uncertainties, the company’s guidance for the second quarter suggests sustained positive momentum. Consequently, Acree has reiterated a Buy rating and raised the price target to $125, aligning with the industry average valuation multiples.
In another report released today, Needham also maintained a Buy rating on the stock with a $104.00 price target.