CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We hold our 12-month target at $110 on P/E of 13.3x our CY 25 EPS estimate of $8.27, below peers/historical given anemic demand but we do see Jun-Q as the cyclical trough. We reduce our FY 24 (Sep.) EPS view to $6.22 from $7.03 and FY 25 to $8.01 from $8.90. SWKS posts Mar-Q EPS of $1.55 vs. $2.02, beating the $1.53 consensus. Sales fell 13% from Dec-Q and are seen falling another 14% in Jun-Q, below expectations, as mobile customers digest excess inventories. We note that weakness in mobility partly stems from Apple inventory unwind (38% of Mar-Q sales), with segment revenue seen declining 20%-25% seq. in Jun-Q after -19% in Mar-Q, well below historical seasonal trends. We are growing more concerned about SWKS’s business prospects, as it is expected to lose 10% content in the next iPhone launch, while we note increasing competitive pressures from Qualcomm/Qorvo/China vendors. On a more positive note, broad markets appear to have stabilized and see opportunities across auto/industrial markets.