Skyworks stock rating cut to hold at Argus on iPhone 17 concerns

On Monday, Skyworks Solutions (NASDAQ:SWKS) received a downgrade from Argus, changing its intermediate-term rating from Buy to Hold. The research firm maintained its long-term Buy rating on the company. Argus analysts highlighted that Skyworks surpassed non-GAAP EPS expectations for the first quarter of fiscal year 2025, while its revenue aligned with consensus predictions. However, the company’s stock experienced a downturn following the announcement that it anticipates a 20%-25% reduction in content in the upcoming iPhone 17, set to be released in September 2025. According to InvestingPro data, Apple currently trades at $229.54, with 22 analysts having revised their earnings downward for the upcoming period, suggesting broader supplier concerns in the iPhone ecosystem.

Skyworks Solutions, known for providing standalone RF solutions, is encountering heightened competition from other companies, including Qualcomm (NASDAQ:QCOM), which offers combined RF-modem solutions that are becoming increasingly relevant in the AI-driven era. The analysts noted that the competitive landscape is a contributing factor to their rating adjustment. For deeper insights into the competitive dynamics and financial health of companies in this sector, InvestingPro offers comprehensive analysis and real-time metrics for over 1,400 US stocks.

The downgrade comes after Skyworks’ shares already suffered from the previous loss of business related to the iPhone 16. Argus analysts stated that they are not prepared to upgrade Skyworks based solely on the recent decline in its share price. They expressed that evidence of a recovery in the Mobility sector and a resurgence of strong growth in the Broad Markets segment would be necessary before they would consider revising their rating upwards.

Argus’s decision to downgrade Skyworks Solutions reflects the challenges the company faces in maintaining its market share within the rapidly evolving tech industry, particularly in the mobile segment. The firm’s analysts are closely monitoring Skyworks’ performance and market dynamics to determine the appropriate time for a potential rating change.

In other recent news, Apple Inc (NASDAQ:AAPL). has been instructed by the UK government to create a backdoor for access to global user data, instigating a potential privacy debate. This directive, part of the UK’s Investigatory Powers Act, prohibits companies from disclosing when such an order has been issued.

Simultaneously, Rosenblatt Securities has downgraded Skyworks Solutions from Buy to Neutral, setting a price target of $80. This change follows the company’s recent financial report and guidance, with concerns raised due to a predicted reduction in the component content Skyworks provides for the upcoming iPhone 17.

JPMorgan continues to maintain an Overweight rating on Apple Inc. shares, with a price target of $270. This outlook is based on data indicating a month-over-month increase of 2.7% in Apple’s App Store revenue in January, surpassing the historical average growth.

Apple Inc. has also launched a new application, Apple Invites, designed to simplify the process of creating and managing event invitations for iPhone users. This app integrates with other Apple services such as iCloud Shared Albums and Apple Music playlists.

Lastly, Evercore ISI maintains an Outperform rating on Apple stock, with a $260 price target. This stance follows Apple’s recent financial results, which revealed a performance largely in line with expectations for the December quarter, and a March quarter guide that exceeded some investors’ concerns.

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