Stifel analyst Ruben Roy downgraded Skyworks (SWKS) to Hold from Buy with a price target of $62, down from $105. The company has lost additional content at its largest customer, Apple (AAPL), given a move to a dual-sourced socket strategy for a complex device that had previously been sole-sourced to Skyworks, the analyst tells investors in a research note. The firm points out management noted expectations for a 20%-25% content reduction in the next generation iPhone 17 product. While Skyworks had viewed the iPhone 17 as a transition cycle to iPhone 18, a content recovery is not a likely event until Apple shifts to larger mix of internally sourced modems, contends Stifel. It believes the company’s revenue and profitability prospects are now “significantly lower” relative to previous assumptions through fiscal 2026.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on SWKS:
- Skyworks Solutions Reports Decline in Quarterly Revenue
- Skyworks says content position expected to decline 20%-25%
- Inseego Skyworks chairman Phil Brace steps down, Jeff Tuder succeeds
- Skyworks reports Q1 adjusted EPS $1.60, consensus $1.57
- Skyworks sees Q2 adjusted EPS $1.20 at midpoint, consensus $1.19