Susquehanna Raises Skyworks Price Target to $75 Ahead of Q2 Preview, Retains Neutral Rating

Susquehanna has raised its price target for Skyworks Solutions (SWKS) to $75, up from $60, while retaining a Neutral rating. The firm forecasts Q2 results to meet expectations or show modest gains due to increased demand from tariff adjustments and AI advancements. However, analysts express caution about the latter part of the year, indicating potential uncertainties. Based on 18 analyst estimates, the average target price is $70.43, implying a 3.16% downside from the current price of $72.72.

Susquehanna has raised its price target for Skyworks Solutions (SWKS) to $75, up from $60, while retaining a Neutral rating. The firm forecasts that Skyworks will report Q2 results that meet expectations or show modest gains due to increased demand from tariff adjustments and advancements in artificial intelligence. However, analysts express caution about the latter part of the year, indicating potential uncertainties. Based on 18 analyst estimates, the average target price is $70.43, implying a 3.16% downside from the current price of $72.72 [2].

Skyworks Solutions recently reported solid financial performance, with revenue of $953 million, exceeding the midpoint of their guidance. The company generated a free cash flow of $371 million and returned $600 million to shareholders through dividends and share repurchases. Despite these positive developments, the company faces challenges, including a decline in mobile revenue and competitive pressures in the market [3].

Analysts at Susquehanna and other firms have varying opinions on Skyworks Solutions. While some maintain a Neutral rating, others have initiated Sell ratings due to concerns about the company's revenue decline and high valuation. However, the overall analyst consensus remains "Hold," suggesting a balanced view of the company's prospects [3].

Skyworks Solutions' strong balance sheet and positive earnings outlook provide a positive outlook, but challenges in the mobile segment and competitive pressures are significant concerns. The company's diversified business growth and shareholder returns offer some support, but navigating these challenges will be crucial for future success.

References:
[1] https://www.gurufocus.com/news/2994717/skyworks-solutions-swks-price-target-raised-by-susquehanna--swks-stock-news?r=4bf001661e6fdd88d0cd7a5659ff9748
[2] https://www.gurufocus.com/news/2992953/susquehanna-raises-skyworks-swks-price-target-ahead-of-q2-preview-swks-stock-news
[3] https://www.tipranks.com/stocks/swks/forecast