Citi adds ‘positive catalyst watch’ on Skyworks into earnings

Citi added a “positive catalyst watch” on shares of Skyworks (SWKS) into the company’s June quarter report. The firm sees upside risk to Street estimates on higher iPhone 16 build plan revisions in the second half of 2024. Apple accounted for 66% of Skyworks sales in fiscal 2023, the analyst tells investors in a research note. While Citi acknowledges the positive sentiment around Apple Intelligence, it sees excitement in the supply chain of the potential of 90M-100M iPhone 16 A18 processor chip orders this year, and notes buy-side expectations of 250M-260M iPhone units next year. Apple supply chain stocks historically outperform Apple (AAPL) shares going into the September iPhone launch event, Citi adds. The firm keeps a Sell rating on Skyworks with an $83 price target.