A sell-side opinion issued Thursday suggested it may be time to buy the stock at current levels. Argus initiated coverage of this semiconductor company with a Buy rating and a 12-month price target of $120.
Analyst Jim Kelleher noted that the company has a diverse set of products, deriving roughly three-quarters of revenue from mobile devices. The analyst believes Skyworks is poised for strong growth, as it brings connectivity to the IoT market.
Additionally, the analyst believes the company can pursue niche acquisitions, given its financial strength, underlined by a lack of debt and a $1 billion-plus in cash and investments. The analyst is of the view that through acquisition, the company can expand beyond its core mobility business.
"With SWKS having pulled back from peak prices, SWKS shares are inexpensive versus peers and in line with historical comparables," the firm said. The recent underperformance was attributed to growth flattening at Apple Inc. AAPL.
The firm is of the view that the shares are particularly attractive on DFCF valuation.
Related Links: Analyst: The Top Tech Stock Isn't Apple, Alphabet Or Amazon - It's Skyworks Solution Benzinga's Bulls And Bears For The Past Week: Semiconductors And Warren Buffett _____ Image Credit: By Epop - Own work, CC BY-SA 3.0, via Wikimedia Commons© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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