Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Mizuho has downgraded Qorvo Inc (NASDAQ:QRVO) from Neutral to Underperform and reduced its price target to $60 from $70, citing concerns about the company’s growth prospects. The semiconductor company, currently trading at $92.13 with a market cap of $8.54B, is showing mixed signals, with InvestingPro analysis indicating the stock is currently undervalued.
The downgrade comes despite Qorvo’s recent iPhone content gains of more than 10% year-over-year, as Mizuho expects the company’s topline to grow less than 3% annually through fiscal year 2028.
Mizuho has cut its estimates below consensus by 6% for fiscal year 2027 and approximately 13% for fiscal year 2028, reflecting a cautious outlook on the company’s performance.
The new price target of $60 represents a multiple of approximately 11.5 times Mizuho’s fiscal year 2027 earnings per share estimate, which is below Qorvo’s historical average.
While Mizuho acknowledges that Qorvo’s strong performance in Aerospace & Defense and Industrial segments will provide some support, it believes these gains will be more than offset by slower growth in the company’s Advanced Cellular Group (ACG).
In other recent news, Qorvo Inc . announced its first-quarter fiscal year 2026 earnings, highlighting strong demand in the defense and aerospace sectors. The company reported revenue of $819 million and non-GAAP diluted earnings of $0.92 per share. These results underscore Qorvo’s strategic emphasis on high-growth areas and operational consolidation. The earnings call focused on the company’s efforts to capitalize on these sectors, which are driving its current performance. Despite a slight decline in stock price, the earnings figures reflect Qorvo’s continued resilience in a competitive market. The company’s focus on strategic areas was a central theme during the earnings discussion. These developments are part of Qorvo’s ongoing strategy to strengthen its market position.
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