Goldman Sachs Initiates Coverage of Skyworks with Sell Rating and $70 Price Target

Goldman Sachs initiated coverage of Skyworks with a Sell rating and $70 price target. The firm is bullish on the U.S. analog and radio frequency semiconductor sector, citing cyclical opportunities. However, Skyworks is not included in Goldman's most bullish category as it ships above trend and struggled with supply chain management.

Goldman Sachs has initiated coverage of Skyworks Solutions (SWKS) with a 'Sell' rating and a price target of $70. The investment firm has taken a generally optimistic stance on the U.S. analog and radio frequency semiconductor sector, highlighting cyclical opportunities it anticipates in the market. According to Goldman Sachs, the analog industry is expected to align closer to its trendline shipments within the next 12 to 18 months [1].

While Goldman Sachs is bullish on the sector, Skyworks Solutions is not included in its most bullish category. The firm notes that Skyworks is currently shipping above trend and has struggled with supply chain management. The average one-year price target for Skyworks Solutions Inc (SWKS) is $69.86, with a high estimate of $100.00 and a low estimate of $52.00. The average target implies a downside of 10.01% from the current price of $77.63 [1].

In its latest earnings report, Skyworks Solutions delivered solid financial performance. The company reported revenue of $953 million, exceeding the midpoint of its guidance. It generated a free cash flow of $371 million and returned $600 million to shareholders through dividends and share repurchases [2]. However, the company faces challenges, including a 17% sequential decrease in mobile revenue and ongoing inventory digestion in certain end markets [2].

Goldman Sachs' rating and price target for Skyworks Solutions reflect its cautious view on the company's current position and future prospects. The firm's analysis highlights the importance of effective supply chain management and alignment with industry trends for success in the sector [1].

References:
[1] https://www.gurufocus.com/news/2968521/goldman-sachs-assigns-sell-rating-to-skyworks-swks-with-70-target-swks-stock-news
[2] https://za.investing.com/news/analyst-ratings/goldman-sachs-downgrades-altimmune-stock-to-sell-on-pemvidutide-concerns-93CH-3784116