Stocks slipped on Wednesday amid falling Apple iPhone production and analysts’ fears of a downturn.
Baird analyst Tristan Gera rated his performance on the mobile phone radio chips provider as “neutral”.
Gera has lowered the price target for a new Skyworks (Tucker: SWKS) from $ 220 to $ 165. Shares of Skyworks closed at 8 158.65 on Tuesday, and fell 1.8 percent to 5 155.59 on Wednesday.
Gera expects a “secular slowdown” in the growth of radio-related components in high-end smartphones, up from 10% last year to 10% this year, and even more modest in the coming years. With growth He noted that the change in 5G phones has increased the radio chip “content” per device, but that the change is now largely complete. He also says that after the company won market share on its key customer a few years ago (a reference).
Skyworks’ market share “appears to be stabilizing going forward.”
According to recent reports that Apple is cutting production of the iPhone 13 due to a partial shortage, Gira says supply disruptions “may reduce shipments beyond initial expectations during this new iPhone cycle period.” ۔ “
In addition, the adoption rate of 5G phones in China has risen from 75% to 80%, “5G phone units would suggest tracking the overall smartphone units more closely as the 5G adoption rate increases. It’s getting stronger. “
Gera’s earnings per share estimate for Skyworks is much lower than Street. He estimates earnings per share of 9. 9.25 for FY2021, down اس 10.41 per share and 10 10.55 per share for FY2022, اتفاق 11.50 by consensus.
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