Stryker shares tumble despite strong Q2 results and raised guidance
Thursday, CFRA downgraded Skyworks Solutions (NASDAQ:SWKS) from Hold to Sell, adjusting the price target downward to $61 from the previous $73. The firm’s analyst Angelo Zino cited concerns that warranted the change in rating and price outlook for the semiconductor company. According to InvestingPro data, while Skyworks maintains a GOOD financial health score, analysts anticipate an 8% sales decline in the current year. The company’s stock is currently trading below its Fair Value, suggesting potential value opportunity despite near-term headwinds.
The downgrade comes as the market evaluates the latest developments and adjusts its expectations for Skyworks Solutions’ future performance. The new price target of $61, set by CFRA, reflects a more cautious stance on the company’s stock value, suggesting potential headwinds or underperformance relative to the market. Despite these concerns, InvestingPro analysis reveals the company’s strong fundamentals, including an impressive 11-year streak of dividend raises and a healthy 4.2% dividend yield. Get access to 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
In a separate note, the analyst highlighted a recent approval by the FDA for a new therapy by Verastem Oncology (NASDAQ:VSTM). The FDA granted approval for avutometinib in combination with defactinib for the treatment of recurrent KRAS mutant low-grade serous ovarian cancer (LGSOC). This marks the therapy as the first of its kind to be approved for this rare form of ovarian cancer.
Physicians have reportedly shown a strong interest in adopting this new treatment, which could represent a significant market opportunity for Verastem Oncology. The analyst estimates a $402 million opportunity in the United States for this treatment, specifically targeting the KRAS mutant (KRASm) indication.
While the current approval does not cover wild-type (WT) LGSOC, there is anticipation for broader adoption pending potential inclusion in the National Comprehensive Cancer Network (NCCN) guidelines. In light of these developments, the analyst has set a price target for Verastem Oncology at $19.
In other recent news, Skyworks Solutions reported its second-quarter fiscal year 2025 earnings, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $1.24, exceeding the forecasted $1.20, and revenue reached $953 million, slightly above the anticipated $951.52 million. Despite the positive earnings, the company’s stock experienced a decline in after-hours trading. Skyworks Solutions has provided guidance for the third quarter of fiscal year 2025, projecting revenue between $920 million and $960 million, with an expected gross margin of 46-47%. Stifel analysts have raised the company’s price target to $72 from $62 while maintaining a Hold rating. This adjustment comes after the company’s earnings report and improved guidance, indicating cautious optimism despite losing its single-source content position for two high-volume iPhone 17 platforms. Additionally, Skyworks Solutions announced changes in its executive team, with Mark Dentinger appointed as the new CFO and Todd Lepinski as Senior Vice President. The company remains focused on areas like Wi-Fi 7 and automotive connectivity as key growth drivers.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.