BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
Investing.com - Goldman Sachs initiated coverage on Skyworks Solutions (NASDAQ:SWKS) with a Sell rating and a $70 price target, implying 11% downside potential. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong cash flow metrics.
The investment bank cited both secular and execution challenges facing the radio frequency (RF) solutions provider, which has experienced revenue declines in recent years.
Goldman Sachs expects these revenue declines to continue through 2026, pointing to execution challenges at key smartphone accounts and limited long-term growth potential in the mobile market vertical, which represents approximately 65% of Skyworks’ revenue in 2024.
While the firm expressed a positive view on Skyworks’ capital return strategy, it believes the structural challenges facing the company are likely to persist in the medium term.
The $70 price target stands in contrast to the average price target from other analysts covering Skyworks, which Goldman Sachs noted typically implies 8% upside for stocks in their coverage universe.
In other recent news, Skyworks Solutions has seen several significant developments. Mizuho (NYSE:MFG) has increased its price target for Skyworks Solutions to $75, citing potential growth in phone memory content driven by artificial intelligence demand. This adjustment reflects optimism about Skyworks’ growth in the non-handset Broad Markets segment, particularly with the adoption of WiFi 7 technology and expansion in the automotive market. Meanwhile, CFRA downgraded Skyworks Solutions from Hold to Sell, lowering the price target to $61, due to concerns about the company’s future performance. In product news, Skyworks launched new ultra-low jitter clock devices aimed at high-speed networking and data center applications, which are designed to meet growing bandwidth demands. Additionally, the company appointed Robert Schriesheim as interim CFO after Mark Dentinger stepped down due to a medical condition. At its annual stockholder meeting, Skyworks elected nine directors and ratified KPMG LLP as its independent auditor for fiscal year 2025. A stockholder proposal for a simple majority vote was approved, while a proposal on disclosing Scope 3 greenhouse gas emissions did not pass.
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