Shares of Skyworks Solutions (NASDAQ: SWKS ) are down 2.7% in pre-open trading Thursday after Barclays downgraded the stock citing a lack of catalyst in the RF space.
Barclays analysts downgraded the stock to Equal Weight from Overweight while maintaining a $115 price target.
"We see few catalysts in the RF space into next year and downgrade SWKS to EW as the stock closes the valuation gap with QRVO and approaches our $115 PT," they commented.
The analysts note the Apple (NASDAQ: AAPL ) content story was flat this year due to a WiFi 6E boost but losing 2.4GHz to Murata (TYO: 6981 ). Meanwhile, the Android market is still underperforming, offering little excitement. There might be a content story for the iPhone 16, but it remains unseen. They question the RF growth story with 5G becoming mature.
Initially, they preferred SWKS over Qorvo (NASDAQ: QRVO ) based on valuation, but the gap has narrowed since their SWKS upgrade on 1/23/23 (SWKS +11% and QRVO +3%).
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