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Investing.com - TD Cowen has raised its price target on Qorvo Inc (NASDAQ:QRVO) to $95.00 from $80.00 while maintaining a Hold rating on the stock. According to InvestingPro data, Qorvo currently trades below its Fair Value, with analyst targets ranging from $67 to $125. The company boasts a perfect Piotroski Score of 9, indicating strong financial health.
The firm cited strong radio frequency (RF) demand from flagship smartphones as the key driver behind Qorvo’s June 2025 quarter earnings beat and raised guidance, despite ongoing sales declines in the China Android market expected in the second half of fiscal 2026. With a current market capitalization of $8 billion and a healthy gross profit margin of 42%, InvestingPro analysis shows the company maintains strong operational efficiency.
TD Cowen noted that Qorvo’s commentary suggesting component sales are broadly aligned with mobile industry shipments could indicate limited channel inventory growth, which is a positive signal for the company’s supply chain health.
The research firm highlighted that Qorvo’s Defense and Aerospace segments continue to drive double-digit year-over-year growth in the High Performance Analog (HPA) business, while the September quarter gross margin guidance of 48-50% represents another positive indicator.
Qorvo plans to consolidate its surface acoustic wave (SAW) filter production from Greensboro, North Carolina to Richardson, Texas, which will incur $10-20 million in startup costs in fiscal year 2026 but is expected to generate annual cost of goods sold (COGS) savings beginning in late fiscal 2027 or early fiscal 2028.
In other recent news, Qorvo Inc. reported a strong start to its fiscal year 2026, surpassing earnings expectations for the first quarter. The company posted earnings per share of $0.92, significantly higher than the projected $0.63, marking a 46.03% increase. Revenue also exceeded forecasts, reaching $819 million compared to the anticipated $776.3 million. In addition to these earnings results, Loop Capital raised its price target for Qorvo to $90 from $75, maintaining a Hold rating. This adjustment was influenced by Qorvo’s first-half fiscal revenue running approximately 5% ahead of target, alongside improvements in gross margins. Similarly, Needham increased its price target to $104 from $90, citing Qorvo’s strong quarterly performance and content gains in Apple (NASDAQ:AAPL) products. Needham also maintained a Buy rating, highlighting the acceleration in internal modem plans based on the company’s financial modeling. These developments reflect a positive outlook for Qorvo’s financial health and strategic initiatives.
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