Stifel Nicolaus analyst Ruben Roy downgraded the rating on Skyworks Solutions (SWKS – Research Report) to a Hold yesterday, setting a price target of $62.00.
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Ruben Roy has given his Hold rating due to a combination of factors affecting Skyworks Solutions. The primary reason for the downgrade is the company’s loss of exclusive content at its major customer, Apple, which has shifted to a dual-sourced strategy for a key component previously supplied solely by Skyworks. This shift is expected to reduce Skyworks’ content in the next-generation iPhone by 20-25%, impacting its medium-term revenue and profitability outlook.
While Skyworks reported in-line financial results for the first fiscal quarter, the future guidance reflects challenges due to the reduced content in upcoming iPhone models. The loss of single-source status on a high-value module impacts more than half of two iPhone 17 platforms, leading to a revised revenue expectation significantly lower than previous forecasts. The company’s growth prospects hinge on potential recovery with the iPhone 18, yet this remains uncertain amid competitive pressures and execution risks. Consequently, the current scenario suggests a ‘wait-and-watch’ approach until clearer signs of recovery emerge.
In another report released today, B.Riley Financial also downgraded the stock to a Hold with a $65.00 price target.
SWKS’s price has also changed moderately for the past six months – from $99.700 to $87.080, which is a -12.66% drop .