TD Cowen analyst Krish Sankar has maintained their neutral stance on SWKS stock, giving a Hold rating on October 29.
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Krish Sankar has given his Hold rating due to a combination of factors influencing Skyworks Solutions. The company’s recent results slightly exceeded expectations, with encouraging trends in the Broad Markets and momentum in Android, particularly with Google. However, the main driver for the stock remains its content gains at Apple, which are uncertain as management has not committed to an update. The price target is maintained at $75.
Despite better-than-expected guidance, there are concerns about content loss impacting operating margins, as revenue growth did not translate into profit growth. Additionally, while revenues excluding Apple showed significant year-over-year growth, the overall operating profit declined. The future outlook includes potential risks and opportunities, such as regaining lost content at Apple or facing challenges from a potential merger with QRVO being blocked by Chinese regulators.