Mizuho raises Skyworks Solutions price target to $75 on AI memory growth

Published 01/07/2025, 12:26
Mizuho raises Skyworks Solutions price target to $75 on AI memory growth

Investing.com - Mizuho (NYSE:MFG) has raised its price target on Skyworks Solutions (NASDAQ:SWKS) to $75.00 from $72.00 while maintaining a Neutral rating on the stock. Currently trading at $74.52, InvestingPro analysis suggests the stock is undervalued, with the company maintaining a GOOD overall financial health score.

The price target adjustment comes as Mizuho sees artificial intelligence demand potentially driving phone memory content growth, with DRAM and SSD storage potentially doubling from 12GB/512GB to 24GB/1TB configurations.

Mizuho believes Skyworks will benefit from non-handset Broad Markets segment growth, specifically citing WiFi 7 technology adoption and automotive market expansion that could help offset increasing competition from Chinese manufacturers.

The new $75 price target represents a 17.9x multiple on Mizuho’s fiscal 2026 earnings estimates, slightly higher than the previous 17.2x multiple.

Mizuho also adjusted its outlook for Qorvo (NASDAQ:QRVO), raising its price target to $84 from $75 while maintaining a Neutral rating, citing tailwinds in Qorvo’s Design and Assembly business with expected ramps through fiscal 2026.

In other recent news, Skyworks Solutions reported its second-quarter fiscal year 2025 earnings, revealing a revenue of $953.2 million and an adjusted earnings per share (EPS) of $1.24, both exceeding consensus estimates. Following this report, Stifel raised its price target for Skyworks Solutions to $72 from $62, maintaining a Hold rating, while CFRA downgraded the stock from Hold to Sell, setting a new price target of $61 due to concerns about future performance. In executive changes, Mark Dentinger stepped down from the CFO position due to health reasons, with Robert Schriesheim appointed as interim CFO. The company also held its annual stockholder meeting, where nine directors were elected, and KPMG LLP was ratified as the independent auditor for fiscal year 2025. Additionally, stockholders approved a proposal for a simple majority vote but did not pass a proposal for disclosing Scope 3 greenhouse gas emissions. Skyworks launched new timing products for networking and data center applications, aiming to address bandwidth demands with its latest ultra-low jitter clock devices. These developments come amid Skyworks’ ongoing strategic initiatives and market evaluations.

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