Balanced Outlook on Skyworks Solutions Amid Strategic Shifts and Competitive Pressures

Analyst Joseph Moore of Morgan Stanley maintained a Hold rating on Skyworks Solutions (SWKS – Research Report), retaining the price target of $68.00.

Joseph Moore’s rating is based on a combination of factors that reflect both optimism and caution regarding Skyworks Solutions’ future prospects. The company is undergoing a strategic shift under the new leadership of CEO Phil Brace, who is focused on restoring product competitiveness and diversifying the business through growth in broad markets and mergers and acquisitions. While these strategic moves are promising, Moore emphasizes that the success of Skyworks largely hinges on regaining content share at Apple, their largest customer.
Skyworks is facing increased competition in the RF space, particularly with Apple’s transition to an internal modem, which presents both challenges and opportunities. The company aims to capitalize on the growing RF total addressable market driven by AI and increased cloud upload traffic. However, recent losses in market share, particularly in the diversity receive socket to competitors like AVGO, highlight the competitive pressures Skyworks faces. Moore’s Hold rating reflects a balanced view of these opportunities and challenges, suggesting that while there is potential for growth, significant hurdles remain.

In another report released on May 8, J.P. Morgan also maintained a Hold rating on the stock with a $66.00 price target.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SWKS in relation to earlier this year.