KeyBanc Upgrades Skyworks Solutions (SWKS) to Overweight

KeyBanc analyst John Vinh upgraded Skyworks Solutions (NASDAQ: SWKS) from Sector Weight to Overweight with a price target of $105.00.

The analyst comments: "We upgrade SWKS to OW and $105 PT following the merger announcement with QRVO. Our upgrade is based on: 1) View merger as highly complementary, combining a strong track record of execution at SWKS with best-in-class RF technologies at QRVO, which possesses superior BAW filter capabilities; 2) Consolidates a maturing subsector that should result in better pricing and margin expansion; 3) Over $500M in cost synergies, which gets us to $7.46 in EPS in CY27. This deal is not without risk as the close is not expected for 18 months and requires China approval; however, we see favorable risk/reward with SWKS trading at 11x our '27 EPS. Finally, we're upping ests for QRVO and SWKS to reflect the positive preannouncement for the Sept qtr."

For an analyst ratings summary and ratings history on Skyworks Solutions click here. For more ratings news on Skyworks Solutions click here.

Shares of Skyworks Solutions closed at $80.26 yesterday.

You May Also Be Interested In