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SWKS

Skyworks

$67.56

-3.04 (-4.31%)

, AAPL

Apple

$168.37

-6.37 (-3.65%)

07:50
12/10/18
12/10
07:50
12/10/18
07:50

Skyworks downgraded to Sector Weight at KeyBanc on weakening smartphone demand

As previously reported, KeyBanc analyst Weston Twigg downgraded Skyworks (SWKS) to Sector Weight from Overweight given further weakening Apple (AAPL) iPhone demand trends, weaker than expected China smartphone demand, indications Qualcomm (QCOM) is finally gaining market share on RF360 amid transition to 5G in 2H19, and modest share lost in China smartphones to Qorvo (QRVO) this year as a result of RF Fusion phase 6 and signs of supply constraints at Skyworks. While the analyst believes Skyworks remains well positioned for 5G longer term and sees modest downside risk with the stock trading near trough valuation, Twigg struggles to see positive catalysts given the disappointing iPhone cycle and weakening demand environment for China smartphones.

SWKS

Skyworks

$67.56

-3.04 (-4.31%)

AAPL

Apple

$168.37

-6.37 (-3.65%)

QCOM

Qualcomm

$56.00

-1.1 (-1.93%)

QRVO

Qorvo

$61.16

-1.58 (-2.52%)

  • 11

    Dec

SWKS Skyworks
$67.56

-3.04 (-4.31%)

12/10/18
KEYB
12/10/18
DOWNGRADE
KEYB
Sector Weight
Skyworks downgraded to Sector Weight from Overweight at KeyBanc
12/07/18
SUSQ
12/07/18
INITIATION
Target $80
SUSQ
Neutral
Skyworks initiated with a Neutral at Susquehanna
Susquehanna analyst Christopher Rolland last night started Skyworks with a Neutral rating and $80 price target. The analyst recognizes approaching 5G "tailwinds," but he sees near-term industry challenges from global trade tensions and a potential Chinese slowdown. Further, while Apple has always been a significant driver of high-end radio frequency content, the analyst does not expect a full 5G product until the second half of 2020.
12/06/18
SUSQ
12/06/18
INITIATION
Target $80
SUSQ
Neutral
Skyworks, Qorvo initiated at Neutral at Susquehanna
Susquehanna analyst Chris Roland initiated Skyworks (SWKS) and Qorvo (QRVO) with a Neutral rating and respective price targets of $80 and $70. The analyst notes that while "the last few years have been tremendous for RF companies" amid the "advent of high-end 4G handsets in 2013 and subsequent global proliferation into the mid-range", the ramp going forward should be more measured in spite of the emerging "5G dynamic". The analyst also cites the smartphone market that is approaching saturation as "consumer handset replacement rates are lengthening". Roland further points to the global trade tensions and a potential economic slowdown in China adding to the companies' heightened uncertainty.
11/28/18
11/28/18
UPGRADE
Target $76

Equal Weight
Skyworks upgraded to Equal Weight at Morgan Stanley after consensus comes down
As previously reported, Morgan Stanley analyst Craig Hettenbach upgraded Skyworks to Equal Weight from Underweight, noting that negative revisions have brought Street estimates closer to his own view. While he still sees lingering risks in the iPhone supply chain and smartphones more broadly, Hettenbach believes those risks are more appropriately reflected following the meaningful underperformance in the stock, he tells investors. The analyst, who noted that he has been Underweight Skyworks for over two years, keeps a $76 price target on the stock.
AAPL Apple
$168.37

-6.37 (-3.65%)

12/06/18
SUSQ
12/06/18
INITIATION
Target $90
SUSQ
Neutral
NXP Semiconductors initiated with a Neutral at Susquehanna
Susquehanna analyst Chris Roland initiated NXP Semiconductors (NXPI) with a Neutral rating and a price target of $90. The analyst expects the company to benefit from its "substantial auto exposure" but also warns that trade tensions, soft auto sales, and "contracting industry lead times" warrant a near-term pause. Roland adds that once the "Qualcomm (QCOM) hangover" subsides, NXP Semiconductors revenue will re-accelerate as the company refocuses on its core business. The analyst is further positive on the company's "diversification away from Apple (AAPL) and handsets, and focus on new growth opportunities including high-power RF's in 5G infrastructure".
12/07/18
OTRG
12/07/18
NO CHANGE
OTRG
Phone buyer sources point to cuts in Apple iPhone XR orders, says OTR Global
OTR Global said its checks indicate that smartphone buyers and managers at network operators, retailers and distributors in China, Europe and India have mostly reduced their 1Q19 orders for Apple's iPhone XR as sell-through in Q4 has fallen below expectations. 13 of 15 Asian sources reported oversupply for iPhone XR and 4 of 7 Chinese sources noted reduced iPhone XR retail prices, OTR added.
12/10/18
12/10/18
DOWNGRADE

Sector Weight
Qorvo downgraded to Sector Weight at KeyBanc after demand checks
As previously reported, KeyBanc analyst Weston Twigg downgraded Qorvo (QRVO) to Sector Weight from Overweight given further weakening Apple (AAPL) iPhone demand trends, weaker than expected China smartphone demand, and indications Qualcomm (QCOM) is finally gaining market share on RF360 amid transition to 5G in 2H19. While the analyst believes Qorvo remains well positioned for 5G longer term and sees modest downside risk with the stock trading near trough valuation, Twigg struggles to see positive catalysts given the disappointing iPhone cycle and weakening demand environment for China smartphones. Overall, his quarterly Asia supply chain findings and demand checks left him incrementally more cautious on the semiconductor space.
12/07/18
MSCO
12/07/18
NO CHANGE
Target $236
MSCO
Overweight
Apple price target lowered to $236 on China weakness at Morgan Stanley
Morgan Stanley analyst Katy Huberty lowered her FY19 iPhone units forecast to 200M from 213M after her recent meetings in Asia highlighted a weakening China smartphone market, especially at the high-end. However, her Google trends analysis suggests global demand for the new iPhones is holding up, at least relative to past cycles, after the XR launch in November, which leads her to conclude that iPhone revenue downside is "largely isolated to China." The analyst, who added that weak iPhone shipments on the back of lengthening replacement cycles doesn't translate to installed base and Services weakness, lowered her FY19 revenue forecast to $277B, or 4% year-over-year revenue growth. Huberty cut her price target on Apple shares to $236 from $253, but keeps an Overweight rating on the stock.
QCOM Qualcomm
$56.00

-1.1 (-1.93%)

12/03/18
MSCO
12/03/18
NO CHANGE
Target $100
MSCO
Equal Weight
Morgan Stanley says 'a lot has changed' since Qualcomm first bid to buy NXP
After the White House issued a statement that noted Chinese President Xi said he is open to approving Qualcomm's (QCOM) previous bid to buy NXP Semiconductors (NXPI) if it were presented to him again, Morgan Stanley analyst Craig Hettenbach noted that "a lot has changed" since Qualcomm's initial offer. The semiconductor industry was in the midst of an upcyle at that time, but it is now in the midst of a correction that will likely mean downward estimate revision risk in 2019, Hettenbach said. If NXP were presented with another offer, he thinks the board could be open to the idea, but would likely require greater certainty of approval before committing given that the drawn out approval process was a material overhang last time. Hettenbach maintains an Equal Weight rating on NXP shares with a $100 price target.
12/03/18
UBSW
12/03/18
NO CHANGE
UBSW
Meaningful reset in Street semiconductor growth expectations coming, says UBS
UBS analyst Timothy Arcuri believes Street growth expectations for semiconductors are too high and thinks there could be a meaningful reset in expectations coming over the next couple of months. He cites the October SIA data, which showed a decline of revenues on broad-based weakness across memory and analog MCU. Publicly traded companies in the semiconductors space include AMD (AMD), Intel (INTC), Marvell (MRVL), Microchip (MCHP), Micron (MU), Nvidia (NVDA), Qualcomm (QCOM) and Texas Instruments (TXN).
QRVO Qorvo
$61.16

-1.58 (-2.52%)

12/07/18
12/07/18
INITIATION

On The Fly: Top five analyst initiations
Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Zendesk (ZEN) initiated with an Outperform at Wedbush. 2. Skyworks (SWKS) and Qorvo (QRVO) were initiated with a Neutral at Susquehanna. 3. Western Union (WU) initiated with a Market Perform at Keefe Bruyette. 4. Becton Dickinson (BDX) initiated with a Buy at Deutsche Bank. 5. Keurig Dr Pepper (KDP) initiated with a Buy at SunTrust. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.
12/10/18
KEYB
12/10/18
DOWNGRADE
KEYB
Sector Weight
Qorvo downgraded to Sector Weight from Overweight at KeyBanc
12/07/18
SUSQ
12/07/18
INITIATION
Target $70
SUSQ
Neutral
Qorvo initiated with a Neutral at Susquehanna
Susquehanna analyst Christopher Rolland last night started Qorvo with a Neutral rating and $70 price target. The analyst recognizes approaching 5G "tailwinds," but he sees near-term industry challenges from global trade tensions and a potential Chinese slowdown. Further, while Apple has always been a significant driver of high-end radio frequency content, the analyst does not expect a full 5G product until the second half of 2020.

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