Analyst Krish Sankar of TD Cowen maintained a Hold rating on Skyworks Solutions (SWKS – Research Report), with a 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’s recent financial performance showed slightly better-than-expected results, with revenue and earnings per share marginally surpassing market predictions. However, the absence of significant immediate catalysts and the anticipated revenue decline in the upcoming quarter have led to a cautious stance.
Skyworks Solutions faces challenges with its largest customer, which accounts for a substantial portion of its revenue. The loss of market share at this customer is expected to impact future earnings. Additionally, while the Broad Markets segment shows some promise with developments in WiFi7 and automotive sectors, these are medium-term prospects. The company’s ongoing share repurchase program provides some support, but overall, the lack of near-term growth drivers and uncertainties with major clients justify the Hold rating.
Sankar covers the Technology sector, focusing on stocks such as Apple, Pure Storage, and Cohu. According to TipRanks, Sankar has an average return of 13.3% and a 48.99% success rate on recommended stocks.
In another report released yesterday, Mizuho Securities also maintained a Hold rating on the stock with a $72.00 price target.