- Mizuho analyst Vijay Rakesh reiterated Buy on Qualcomm Inc (NASDAQ:QCOM), Qorvo, Inc (NASDAQ:QRVO), and Skyworks Solutions, Inc (NASDAQ:SWKS).
- However, he slashed the price targets of Qualcomm from $185 to $168 (34% upside), Qorvo from $128 to $110 (12% upside), and Skyworks from $170 to $150 (62% upside).
- His checks into the handset supply chain indicated downside risk to JunQ and 2H22 consensus expectations, with slower China reopening, weaker consumer demand, and inventory build as headwinds for handsets.
- He believed QCOM is well-positioned in the smartphone market as a technology leader with a long-term focus on 5G and expanding into new markets in RF and Auto.
- He saw QRVO positioned well for the upcoming 5G ramps around the globe, with smartphones driven by upcoming iPhones and China OEM 5G handset launches and a significant 50-60% dollar RF content increase per handset vs. 4G.
- He believed QRVO could see headwinds from a softer China handset market, supply chain challenges, and increasing competition.
- He saw SWKS positioned well for the upcoming 5G ramps around the globe driven by strong iPhone, Korean OEM share gains and China OEM traction, and a significant 50-100% dollar RF content increase per handset vs. 4G.
- SWKS also has opportunities in its broad markets business with growth in IoT/auto/industrials, improving SWKS's gross margins towards its target.
- Price Action: QCOM shares traded higher by 3.67% at $125.44 on the last check Tuesday.
