Merrill Lynch bullish on SWKS:
(Sorry, I tried to copy the link, but it did not work…you can cut and paste into your browser, though)
http://247wallst.com/technology-3/2016/03/10/merrill-lynch-v…
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Skyworks Solutions
This stock has really rolled over from highs printed in the summer last year, and it could be ready for a big move higher. Skyworks Solutions Inc. (NASDAQ: SWKS) designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property worldwide.
Its product portfolio includes amplifiers, attenuators, battery chargers, circulators, DC/DC converters, demodulators, detectors, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, LED drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase shifters, phase locked loops, power dividers/combiners, receivers, switches, synthesizers, technical ceramics, VCOS/synthesizers and voltage regulators.
The company posted very solid fourth quarter numbers, with sales up 15% and earnings up a stunning 27% year over year. While the low demand for the iPhone 6s did trim the first quarter outlook, the analysts are very positive on the stock as the iPhone 7 cycle begins. In fact, they expect the company to gain 10% to 15% higher content versus the last generation phone.
The $85 Merrill Lynch price target is lower than the consensus target of $90.74. Shares closed most recently at $71.02.
With most of the Apple slowdown long since priced into these top companies, investors with an eye toward the second half of 2016 could be in a sweet spot now, as the stocks still have big upside to the Merrill Lynch targets.
By Lee Jackson
alpha (a lurker, long SWKS)
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