In a report released today, Craig Ellis from B.Riley Financial downgraded Skyworks Solutions (SWKS – Research Report) to a Hold, with a price target of $65.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Craig Ellis’s rating is based on a combination of factors affecting Skyworks Solutions’ current and future performance. Despite the company slightly exceeding sales and earnings expectations for the first fiscal quarter of 2024, significant challenges overshadow these results. A major concern is the anticipated loss of market share with their largest customer, Apple, particularly regarding the next generation iPhone model, which could result in substantial revenue declines. Additionally, the unexpected departure of the long-serving CEO, Liam Griffin, introduces further uncertainty regarding the company’s strategic direction.
Skyworks Solutions also faces potential revenue headwinds, estimated at $180 million per quarter, which pose a challenge to achieving prior long-term financial targets. While certain business segments, such as Integrated Mobile, have shown growth, these positives are outweighed by the broader issues. Consequently, Craig Ellis has downgraded the stock from a Buy to a Neutral rating, reflecting the lowered earnings estimates and reduced price target from $110 to $65, as well as the current lack of convincing recovery prospects.
According to TipRanks, Ellis is a 5-star analyst with an average return of 23.5% and a 53.52% success rate. Ellis covers the Technology sector, focusing on stocks such as D-Wave Quantum, Rigetti Computing, and Axcelis Technologies.