Citi analyst Atif Malik downgraded Skyworks Solutions (SWKS) to Neutral from Buy and lowered his price target for the shares to $85 from $116.
The company is being impacted by broad smartphone weakness, disappointing unit sales of Apple’s (AAPL) iPhone XR, and a high Apple concentration, which represented 39% of sales in fiscal 2019, Malik tells investors in a research note. Further, the analyst thinks 5G radio frequency is a 2020 story versus his prior view of 2019.
Malik also lowered his price target for Buy-rated Nvidia (NVDA) to $270 from $300 to reflect recent market multiple compression. In addition, the analyst dropped his price target for Neutral-rated Qorvo (QRVO) to $75 from $86. Weak iPhone XR units, where Qorvo won incremental mid-high band dollar content, will have a negative impact on the company’s gross margins in 2019, says Mailk.
