Skyworks price target lowered to $68 from $89 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Skyworks (SWKS) to $68 from $89 and keeps an Equal Weight rating on the shares ahead of the company reporting results after the market close on Tuesday, February 3. Apple (AAPL) content remains the primary investor focus, particularly following reports of share losses at Qorvo (QRVO) last week, notes the analyst, who sees some risk for Skyworks as the company lost share in the DRx socket to Broadcom (AVGO) during the last iPhone cycle. There is a narrative that Apple approved the Qorvo transaction to ensure healthy suppliers in an increasingly concentrated RF landscape, which could imply incremental content pressure for Skyworks, adds the analyst, who believes it may take Skyworks time to rebuild technology leadership after several years of content losses.