Analyst Krish Sankar of TD Cowen maintained a Hold rating on Skyworks Solutions, retaining the price target of $75.00.
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Krish Sankar has given his Hold rating due to a combination of factors impacting Skyworks Solutions. The company reported better-than-expected quarterly results, driven by strong mobile demand and favorable product mix, particularly in iOS and Android devices. However, while the near-term outlook appears positive, there are concerns about the sustainability of this demand, especially given the anticipated challenges in future RF content for upcoming product cycles.
Additionally, although Skyworks has plans for operational expense discipline and facility consolidation, which could positively impact margins, there are uncertainties related to the broader market environment. The potential headwinds include a known RF content loss in the upcoming iPhone platform and the lack of reinforcing supply chain data to support the optimistic shipment trends. These factors contribute to a cautious stance, leading to the Hold rating as investors weigh the near-term gains against long-term uncertainties.