On Thursday, Rosenblatt Securities adjusted its stance on Skyworks Solutions (NASDAQ:SWKS) shares, downgrading the stock from Buy to Neutral and setting a price target of $80.00. The move followed the company’s recent financial report and guidance, which were in line with expectations. However, concerns have been raised due to an anticipated reduction in the component content Skyworks provides for the upcoming iPhone 17, compared to the iPhone 16. This development comes as Apple (NASDAQ:AAPL), with its substantial $395.8 billion in revenue over the last twelve months, maintains its position as a dominant force in the technology sector.According to InvestingPro data, Apple currently trades at high earnings and revenue multiples, suggesting strong market confidence in its future growth. InvestingPro’s comprehensive analysis includes over 30 key metrics and insights available for both Apple and its suppliers.
Kevin Cassidy, an analyst at Rosenblatt, expressed that the consecutive content loss from iPhone 16 to iPhone 17 has led to a significant revision of their estimates for Skyworks Solutions. With Apple maintaining a robust gross profit margin of 46.5% and showing steady revenue growth of 2.6% year-over-year, Cassidy remarked on the company’s future, stating, "We will be interested to learn about the company’s strategic direction under newly appointed CEO, Philip Brace, and Chairman Christine King."
The downgrade reflects a cautious stance by Rosenblatt Securities as they await further clarity on the company’s strategy and performance under its new leadership. Cassidy added, "Meanwhile, we are moving to the sidelines with a Neutral rating."
With the revised 12-month target price now standing at $80, Rosenblatt Securities’ assessment signals a reevaluation of Skyworks Solutions’ prospects in the semiconductor industry, particularly in relation to its involvement with the iPhone, a major product for the tech giant Apple. Cassidy concluded, "Our 12-month target price is now $80." The new price target and stock rating suggest a tempered outlook for Skyworks Solutions as it navigates the competitive landscape and internal leadership changes.
In other recent news, JPMorgan (NYSE:JPM) maintains an Overweight rating on Apple with a $270 target, highlighting a 17.6% year-over-year increase in the company’s App Store revenue in January. Despite a discrepancy in App Store downloads, the firm sees potential modest upsides to Apple’s services revenue guidance for the upcoming fiscal quarter. Evercore ISI also maintains an Outperform rating on Apple with a $260 target, following a 4% year-over-year revenue increase in the December quarter and a forecast of around 2-3% sales growth for the March quarter.
Meanwhile, Itau BBA maintains a Market Perform rating on Apple with a $254 target, expressing skepticism about Apple’s growth prospects and competitive challenges, particularly in China. On a different note, Apple launched a new application, Apple Invites, designed to streamline the process of creating and managing event invitations for iPhone users. As recent developments unfold, investors are keenly monitoring Apple’s strategic moves and financial results in the coming quarters.
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