Citigroup Issues Pessimistic Forecast for Skyworks Solutions (NASDAQ:SWKS) Stock Price

Key Points

• Citigroup cut its Skyworks Solutions price target from $90 to $79 and maintained a neutral rating, implying about 4.7% downside from the stock’s then-current price.
• Analyst sentiment overall was “Hold,” with a consensus price target of $76.78; several firms also lowered targets, though other analysts retained neutral or sector-perform ratings.
• Skyworks slightly beat quarterly EPS and revenue estimates, but both declined year over year. Weak smartphone demand and below-expectation sales guidance are near-term concerns, while the company says its Qorvo combination could bring at least $500 million in annual cost synergies.

Skyworks Solutions (NASDAQ:SWKS - Get Free Report) had its target price reduced by research analysts at Citigroup from $90.00 to $79.00 in a note issued to investors on Wednesday, Benzinga reports. The firm presently has a "neutral" rating on the semiconductor manufacturer's stock. Citigroup's price target points to a potential downside of 4.73% from the stock's current price.

A number of other analysts have also issued reports on the company. Royal Bank Of Canada lowered their price target on Skyworks Solutions from $95.00 to $80.00 and set a "sector perform" rating on the stock in a research note on Wednesday. JPMorgan Chase & Co. reduced their price objective on Skyworks Solutions from $70.00 to $65.00 and set a "neutral" rating for the company in a research note on Wednesday, July 29th. UBS Group raised their price objective on Skyworks Solutions from $70.00 to $90.00 and gave the company a "neutral" rating in a report on Thursday, October 29th. Morgan Stanley set a $93.00 target price on shares of Skyworks Solutions in a research note on Wednesday. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Skyworks Solutions in a report on Wednesday, October 28th. Five investment analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Skyworks Solutions has an average rating of "Hold" and a consensus target price of $76.78.

Skyworks Solutions Price Performance

NASDAQ:SWKS traded down $2.48 during trading hours on Wednesday, reaching $82.92. 10,020,089 shares of the company were exchanged, compared to its average volume of 5,131,662. The company has a current ratio of 3.10, a quick ratio of 1.94 and a debt-to-equity ratio of 0.09. The stock's 50-day moving average is $81.21 and its 200-day moving average is $67.81. The firm has a market cap of $12.48 billion, a PE ratio of 42.96, a price-to-earnings-growth ratio of 2.32 and a beta of 1.51. Skyworks Solutions has a twelve month low of $51.93 and a twelve month high of $92.80.

Skyworks Solutions (NASDAQ:SWKS - Get Free Report) last posted its quarterly earnings data on Tuesday, November 3rd. The semiconductor manufacturer reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.01. The business had revenue of $1.05 billion for the quarter, compared to the consensus estimate of $1.04 billion. Skyworks Solutions had a net margin of 7.23% and a return on equity of 10.74%. On average, sell-side analysts anticipate that Skyworks Solutions will post 3.61 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SWKS. Fortitude Family Office LLC lifted its holdings in Skyworks Solutions by 254.7% in the third quarter. Fortitude Family Office LLC now owns 337 shares of the semiconductor manufacturer's stock valued at $29,000 after acquiring an additional 242 shares during the last quarter. Parkside Financial Bank & Trust increased its stake in Skyworks Solutions by 108.4% during the second quarter. Parkside Financial Bank & Trust now owns 396 shares of the semiconductor manufacturer's stock worth $27,000 after acquiring an additional 206 shares during the last quarter. Caitlin John LLC acquired a new stake in Skyworks Solutions during the second quarter worth $27,000. J.Safra Asset Management Corp purchased a new stake in Skyworks Solutions in the second quarter valued at $28,000. Finally, Hara Capital LLC purchased a new stake in Skyworks Solutions in the second quarter valued at $35,000. Hedge funds and other institutional investors own 85.43% of the company's stock.

Key Skyworks Solutions News

Here are the key news stories impacting Skyworks Solutions this week:

• Positive Sentiment: Skyworks says the Qorvo deal expands its RF portfolio and reach in markets including defense, infrastructure, automotive and physical AI. It is targeting at least $500 million in annual cost synergies and 50%–55% gross margins within 24–36 months, offering potential longer-term upside if it delivers. Skyworks Begins New Chapter Following Qorvo Combination
• Neutral Sentiment: Fiscal Q4 adjusted EPS of $1.28 and revenue of about $1.05 billion slightly exceeded analyst estimates, but both were lower year over year, limiting the reassurance from the beat. Skyworks Q4 Earnings Beat Estimates, Revenues Decline Y/Y
• Negative Sentiment: The main headwind is first-quarter sales guidance below expectations. A sluggish smartphone market and Android-related weakness are delaying the payoff from the Qorvo merger, prompting concern about near-term performance. Skyworks tumbles as sluggish smartphone market weighs on forecast
• Negative Sentiment: Several analysts cut their price targets after the results: RBC lowered its target to $80, Susquehanna to $75, and Goldman Sachs initiated coverage with a sell rating and a $78 target. The stock’s strong run this year may also leave it vulnerable if near-term expectations keep resetting. Analysts Lower Forecasts Following Q4 Results

Skyworks Solutions Company Profile

Skyworks Solutions, Inc NASDAQ: SWKS is a semiconductor company that designs and manufactures high-performance analog and mixed-signal products for wireless connectivity applications. Its portfolio includes radio-frequency front-end modules, amplifiers, filters, switches, antenna tuners, and other integrated solutions used to transmit, receive, and manage wireless signals.

The company serves a range of markets, including smartphones and other mobile devices, automotive systems, industrial equipment, home automation, medical devices, aerospace, and defense.

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