-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We increase our 12-month target to $89 from $81, on a P/E of about 11.5x our CY 27 EPS view of $7.76, below historical to reflect challenges across the RF space. We keep our FY 27 (Mar.) EPS estimate at $6.96 and reduce FY 28's to $8.01 from $8.46. Although we are encouraged by cost synergies from a potential acquisition by Skyworks Solutions (SWKS), receiving the necessary regulatory approvals is still a risk (entering Phase 2 in China). We continue to have concerns about QRVO's high exposure to low/no growth markets (e.g., smartphones) while the opportunity cost is high relative to better investment opportunities/growth trajectories across other vectors of the chip industry. Although revenue from QRVO's mobile business has held up better than we expected, we are wary of the competitive landscape, memory bottlenecks, and other supply chain inflationary pressures/availability. Under the deal terms of the merger, QRVO investors would receive $32.50 in cash and 0.96 of a SWKS share for each QRVO share.