Trump/Cook, Nissan weakness, more tariffs and gold - what’s moving markets
On Thursday, Loop Capital made a notable adjustment to the financial outlook for Skyworks Solutions (NASDAQ:SWKS), reducing the price target on the company’s stock from $90 to $70 while maintaining a Hold rating. The decision comes in the wake of the latest earnings call, where Skyworks Solutions’ management acknowledged a significant reduction in the company’s involvement in the iPhone 17. Currently trading at $87.08, the stock is near its 52-week low of $82.13, though InvestingPro analysis suggests the company is undervalued based on its Fair Value calculations.
The revised price target reflects a recalibration of expectations after the company disclosed it would face a considerable loss in sales. Analysts at Loop Capital estimate that Skyworks Solutions will see an annual decrease in sales ranging from $500 million to $550 million due to reduced content in the production of the iPhone. This change is expected to affect the company’s iPhone-specific sales, with an average content loss of approximately $2.25 per device. Despite these challenges, the company maintains strong financials with $4.18 billion in revenue and a healthy free cash flow yield of 12%.
The earnings call revealed that the impact of this loss on Skyworks Solutions’ financial performance was significant enough for Loop Capital analysts to reevaluate their stance on the stock’s valuation. The firm’s decision to maintain a Hold rating indicates a cautious approach to the stock, suggesting that investors may want to wait for more clarity on the company’s future revenue streams before making further investment decisions.
Skyworks Solutions is a key player in the semiconductor industry, providing components for a range of consumer electronic devices. With a market capitalization of $13.93 billion and operating with moderate debt levels (Debt/Equity ratio of 0.19), the company maintains a solid financial foundation. The reduction in content for the iPhone 17 represents a setback for the company, as sales linked to iPhone production have been a substantial part of its business. For deeper insights into Skyworks’ financial health and future prospects, InvestingPro subscribers can access comprehensive analysis and additional ProTips in our detailed Pro Research Report.
The adjustment in the price target to $70 from $90 by Loop Capital is a direct response to the new sales forecast and the anticipated impact on Skyworks Solutions’ financial health. The firm’s analysts have recalibrated their expectations to align with the latest developments and the potential implications for the company’s revenue and profitability.
In other recent news, Skyworks Solutions reported earnings and revenue results that met market expectations, but also revealed an anticipated loss in share for the upcoming iPhone 17 production. The company is expected to be dual-sourced on the device, leading to a projected decline in content by 20-25% compared to the iPhone 16. Amid these developments, Skyworks announced a change in leadership, with CEO Liam Griffin stepping down to be succeeded by Philip Brace.
Analysts from KeyBanc Capital Markets and Needham maintained their Sector Weight and Hold ratings on the company, respectively, while Goldman Sachs and Citi revised their price targets. B.Riley downgraded the stock from Buy to Neutral due to the company’s announced share loss with Apple (NASDAQ:AAPL).
Despite the challenges, Skyworks plans to continue its investments to regain share in the iPhone 18 cycle and has authorized a new share repurchase agreement. The company’s Broad Markets segment is showing signs of growth, with expectations for a moderate acceleration throughout FY26. These are recent developments that investors should consider.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.