On Thursday, Rosenblatt Securities adjusted its stance on Skyworks Solutions (NASDAQ:SWKS) shares, downgrading the stock from Buy to Neutral and setting a price target of $80.00. The move followed the company's recent financial report and guidance, which were in line with expectations. However, concerns have been raised due to an anticipated reduction in the component content Skyworks provides for the upcoming iPhone 17, compared to the iPhone 16. This development comes as Apple (NASDAQ:AAPL), with its substantial $395.8 billion in revenue over the last twelve months, maintains its position as a dominant force in the technology sector.According to InvestingPro data, Apple currently trades at high earnings and revenue multiples, suggesting strong market confidence in its future growth. InvestingPro's comprehensive analysis includes over 30 key metrics and insights available for both Apple and its suppliers.
Kevin Cassidy, an analyst at Rosenblatt, expressed that the consecutive content loss from iPhone 16 to iPhone 17 has led to a significant revision of their estimates for Skyworks Solutions. With Apple maintaining a robust gross profit margin of 46.5% and showing steady revenue growth of 2.6% year-over-year, Cassidy remarked on the company's future, stating, "We will be interested to learn about the company's strategic direction under newly appointed CEO, Philip Brace, and Chairman Christine King."
