Courtesy of Benzinga.
Qorvo Inc (NASDAQ: QRVO) is likely to gain some bulk acoustic wave share at Apple Inc. (NASDAQ: AAPL), with more likely in 2019, Barclays said in an upgrade note.
BAWs are filters used to solve interference and co-existence challenges that are used in smartphones, base stations, repeaters, Wi-Fi applications and more.
The Analyst
Barclays analyst Blayne Curtis upgraded Qorvo from Equal-weight to Overweight with an $87 price target.
The Thesis
Risk exists for Qorvo’s June quarter guidance in light of Apple’s iPhone shipment weakness, Curtis said in a Tuesday note. Investors will soon begin to focus on the second half, as both Apple and Samsung Electronics Co Ltd (OTC: SSNLF) could drive revenue and gross margins, the analyst said.
“We believe both QRVO and Skyworks Solutions Inc (NASDAQ: SWKS) can work given double-digit content gains this year.”
Barclays’ June quarter expectations of $666 million in revenue and EPS of $1.02 are below consensus expectations and call for a sequential drop.
Qorvo is likely to pick up some share at the expense of Broadcom Inc (NASDAQ: AVGO), both in the LCD models of iPhones and at Samsung, where it consolidated the mid-to-high packet assembler/disassembler share, Curtis said.
Barclays forecast a 24-percent increase in Qorvo’s blended component content at Apple.
The Price Action
Qorvo shares were rallying 6.5 percent to $71.79 at the time of publication Tuesday.
Related Links:
Analyst: 5 Headwinds Facing Skyworks Solutions
Photo courtesy of Apple.
Latest Ratings for QRVO
Date | Firm | Action | From | To |
---|---|---|---|---|
May 2018 | Canaccord Genuity | Maintains | Buy | Buy |
May 2018 | Barclays | Upgrades | Equal-Weight | Overweight |
Apr 2018 | Morgan Stanley | Maintains | Equal-Weight | Equal-Weight |
View More Analyst Ratings for QRVO
View the Latest Analyst Ratings
Posted-In: Apple Suppliers Barclays Blayne CurtisAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga