Skyworks price target raised to $135 from $125 at Credit Suisse

Credit Suisse analyst Chris Caso raised the firm’s price target on Skyworks (SWKS) to $135 from $125 and keeps an Outperform rating on the shares. The firm notes Skyworks reported an in-line quarter, but guided below consensus, similar to others, as the inventory correction in handset continues. Deconstructing the numbers, Apple (AAPL) revenue appears to be flattish year-over-year, with overall revenue however held back by what Credit Suisse believes was a 55%-60% year-over-year decline in Android revenue, with incremental weakness at Samsung (SSNLF) and revenue to China OEMs remaining at very low levels. The firm doesn’t believe Android revenue can persist at these levels, allowing for favorable mean reversion once Android customer inventory normalizes, which management believes is likely in the second half of the year.