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On Wednesday, Piper Sandler adjusted its price target for Skyworks Solutions (NASDAQ:SWKS), increasing it to $115.00 from the previous $95.00, while keeping a Neutral rating on the stock. This adjustment follows the company's reported earnings, which slightly surpassed consensus expectations for both the June quarter and the forthcoming September quarter.
Skyworks Solutions has demonstrated effective management amid the challenging conditions in the handset market and has shown signs of progress, according to the investment firm.
The company's guidance for seasonal sequential growth in the upcoming September quarter and potential growth in December 2024 indicates a positive trajectory. The analyst also noted that Skyworks is likely to experience a nearly flat performance in its cellular business for the year. The broad market segments are expected to continue showing modest growth throughout the calendar year.
The firm's decision to maintain a Neutral stance on Skyworks Solutions reflects a cautious approach, awaiting a more favorable environment for handset units or additional momentum from large customer units.
Despite the slight adjustments to their financial models, Piper Sandler emphasizes the importance of tangible improvements in the handset market before changing their rating.
In summary, Skyworks Solutions has been recognized for its adept handling of the current market environment and is anticipated to maintain its growth pattern in the coming quarters.
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