Analyst Christopher Rolland of Susquehanna reiterated a Hold rating on Skyworks Solutions (SWKS – Research Report), reducing the price target to $70.00.
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Christopher Rolland has given his Hold rating due to a combination of factors affecting Skyworks Solutions. A significant reason for this rating is the anticipated content loss in Apple’s iPhone 17, which is expected to reduce Skyworks’ revenue by 20-25% year-over-year. This loss is primarily due to Apple diversifying its suppliers, with Broadcom likely securing a larger share. Although Skyworks retained some other key components, the impact on revenue remains substantial.
Despite this setback, there are positive developments on the horizon. Skyworks anticipates that opportunities with other clients could help offset the loss from Apple by fiscal year 2026, with potential content recovery in 2027 through the iPhone 18. Additionally, the company’s Broad Markets division is showing signs of growth, particularly in Edge IoT and connected car technologies, which could drive future revenue. However, ongoing challenges such as inventory issues in Industrial and Infrastructure sectors, along with factory underutilization, pose risks to growth. Consequently, Rolland maintains a Hold rating while adjusting the price target from $100 to $70.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $75.00 price target.