Qorvo downgraded to Market Perform from Outperform at Raymond James

Raymond James analyst Srini Pajjuri downgraded Qorvo (QRVO) to Market Perform from Outperform without a price target post the September quarter results. The company’s December quarter outlook fell well short of estimates, which management attributed to unfavorable mix in premium phones, which is impacting the company’s radio frequency content, and mix shift away from mid-tier to entry-tier in Android, where the company has limited to no presence, the analyst tells investors in a research note. The firm suspects price pressures and domestic China competition are also playing a role in mainstream models as 5G cycle matures. It expects Qorvo’s mix headwinds to persist for the next few quarters and does not see many immediate catalysts for the stock “despite a reasonable valuation.”