Goldman Sachs initiated coverage of Skyworks Solutions with a Sell rating and a $78.00 price target, implying potential downside from the stock’s previous close. The firm cited the company’s reliance on the struggling smartphone market, which accounts for about 60% of its revenue.
The analyst action follows Skyworks’ fiscal fourth-quarter earnings report on November 3rd. The company issued weak guidance for the December quarter, its first since completing its merger with Qorvo.
Skyworks beat consensus estimates for Q4, but the disappointing outlook overshadowed the results and sent the stock sharply lower. Investors are weighing the risks of integrating the two large companies amid sluggish smartphone demand.