Qorvo downgraded to Sell from Neutral at Citi

Citi downgraded Qorvo to Sell from Neutral with a price target of $78, down from $116. The firm sees increased China substitution risk post the recent Huawei Mate 60 phone launch, which it believes uses domestic radio frequency and connectivity chips. While the company’s China sales have already come down over the last year due to weak China smartphone demand, increasing competition from Chinese domestic RF component makers will lead to potential share losses and a weak sales recovery in 2024, the analyst tells investors in a research note.