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Investing.com - Goldman Sachs initiated coverage on Qorvo Inc (NASDAQ:QRVO) with a Neutral rating and a $90.00 price target on Thursday. According to InvestingPro analysis, the stock appears undervalued at current levels, with a perfect Piotroski Score of 9 indicating strong financial health.
The investment bank noted that despite Qorvo’s significant exposure to the smartphone market and heavy reliance on a single customer, with Apple (NASDAQ:AAPL) accounting for approximately 47% of revenue in fiscal year 2025, the company has made strategic moves to diversify its business. The company maintains strong financial flexibility with a healthy current ratio of 2.77 and operates with moderate debt levels.
Goldman Sachs highlighted Qorvo’s expansion into growth verticals such as aerospace and defense, while also optimizing its manufacturing footprint, which the firm views as strategic positives.
These initiatives should drive earnings growth with multiple expansion over time, according to Goldman Sachs’ analysis of the semiconductor company’s business strategy.
The firm maintained a Neutral stance on Qorvo stock due to "limited upside to estimates and the multiple given challenged growth prospects in the smartphone market."
In other recent news, Qorvo, Inc. announced the approval of performance-based restricted stock units (PBRSUs) for its executive officers under the 2022 Stock Incentive Plan. The PBRSUs are designed to incentivize specific company objectives, including customer design wins and technological advancements, with potential for executives to earn up to 200% of the target number if all objectives are met. Additionally, Qorvo’s Board of Directors approved amendments to its corporate bylaws, allowing shareholders owning at least 25% of the company’s stock to call special meetings, enhancing shareholder influence over corporate decisions. In analyst updates, Mizuho (NYSE:MFG) raised Qorvo’s price target to $84, reflecting optimism about AI-driven content growth and improvements in the company’s Design and Automation business. Despite this, Mizuho maintained a Neutral rating on the stock. Piper Sandler reiterated an Overweight rating with a $110 price target, citing Qorvo’s strong customer position and cost optimization initiatives. Meanwhile, Raymond (NSE:RYMD) James noted limited exposure for Qorvo in China’s Android market as part of its broader analysis of the semiconductor sector. These recent developments provide investors with a clearer picture of Qorvo’s strategic direction and market positioning.
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