Tim Long from BMO Capital Markets raised his ratings on the two major remaining RF wireless chip makers, Qorvo (QRVO) & Skyworks (SWKS). Qorvo is the new company formed as a result of a merger between RFMD and TriQuint. Both stocks have been given an Outperform rating, up from Market Perform, and assigning an $85 target to Skyworks and an $80 target to Qorvo.
Long sees three main reasons for this rating:
- Apples Gaining Smartphone Share
- Samsung adding more RF bands in each of its devices
- The emergence of 4G in China.
Qorvo and Skyworks are the leading suppliers to Apple, Samsung and most of the other smartphone developers. Keith Bachman, BMO Capital Enterprise Hardware analyze raises his Skyworks 2015 EPS estimate to $3.15 billion in revenue and $4.77 per share in net income, up from $3.06 billion and $4.59 per share, and raises his Qorvo estimate to $2.56 billion and $3.64 from $2.53 billion and $3.57.
Skyworks shares today are up $2.20, or 3%, at $74.52, while Qorvo stock is up $1.78, or 2.7%, at $67.30.
