Benchmark Co. analyst Cody Acree has reiterated their neutral stance on SWKS stock, giving a Hold rating today.
Cody Acree’s rating is based on several factors influencing Skyworks Solutions’ current market position. The company is facing challenges with its largest customer, Apple, where it anticipates a significant reduction in dollar content in upcoming iPhone models. This expected decline in revenue from Apple is projected to impact Skyworks’ financial performance in the latter half of the year, with mid-to-upper single-digit revenue declines forecasted for FY25 and FY26.
Despite posting slightly better-than-expected results for the March quarter and providing optimistic guidance for the June quarter, the company’s shares remain under pressure due to these competitive challenges. The new management team, including a new CEO, CFO, and Head of Sales, is seen as a potential catalyst for revitalizing the company’s competitive edge. However, until a clear strategy is communicated to address these structural issues, the stock is expected to remain range-bound, justifying the Hold rating.
Acree covers the Technology sector, focusing on stocks such as Tower, Advanced Micro Devices, and Marvell. According to TipRanks, Acree has an average return of 16.9% and a 57.19% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $68.00 price target.