🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Qorvo May Trade At Discount Pending Diversification From Apple, Analyst Says While Downgrading Stock

Published 11/10/2022, 18:11
Updated 11/10/2022, 19:10
© Reuters.  Qorvo May Trade At Discount Pending Diversification From Apple, Analyst Says While Downgrading Stock
AAPL
-
QRVO
-
AAPL34
-
Q1RV34
-

  • Wells Fargo (NYSE:WFC) analyst Gary Mobley downgraded Qorvo, Inc (NASDAQ: QRVO) from Overweight to Equal-Weight and an $85 price target.
  • To accompany his September quarter EPS preview note, he re-rated.
  • However, he did not revise his below-consensus FY24 and FY25 (although we saw a risk to consensus estimates).
  • His lower price target factored in lower peer group multiples and the assumption that QRVO may trade at a discount to the broader chip sectors until the company can diversify the business away from Apple Inc (NASDAQ: NASDAQ:AAPL) and the mobile phone market.
  • His price target assumed QRVO shares traded at only 17.0x our NTM EPS estimate (versus SOX, SWKS & QCOM at 17.0x, 10.0x & 12.0x, respectively).
  • The discount relative to the rest of the chip sector may be a permanent fixture in the valuation consideration for QRVO, given the company’s high exposure to smartphones and Apple.
  • Price Action: QRVO shares traded lower by 2.92% at $79.57 on the last check Tuesday.
Latest Ratings for QRVO DateFirmActionFromTo
Mar 2022 Morgan Stanley (NYSE:MS)DowngradesOverweightEqual-Weight
Feb 2022BenchmarkMaintainsBuy
Feb 2022MizuhoMaintainsNeutral
View More Analyst Ratings for QRVO

View the Latest Analyst Ratings

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.