Benzinga | Sep 11, 2020 11:13AM EDT

Skyworks Solutions Ripe For 'Revenue Growth' Thanks To 5G Prospects, Per Analyst Note

Skyworks Solutions Inc. (NASDAQ:SWKS) seems well positioned to benefit from radio frequency front-end solutions for 5G enabled devices going into production over the next year, according to Rosenblatt Securities.

The Skyworks Solutions Analyst: Kevin Cassidy initiated coverage of Skyworks Solutions with a Buy rating and a price target of $160.

The Skyworks Solutions Thesis: The company could generate "above semiconductor industry revenue growth of 10% over the next two years," Cassidy said in the initiation note.

He explained that 5G could evolve into the backbone network for connecting automobiles, IoT appliances, factory robotics and various other appliances to the internet and this market segment contributes 30% of Skyworks Solutions' revenue.

"The company can leverage its multiple generations of cellular RF technology leadership and smartphone OEM relationship to expand its customer base. The increasing RF front-end design complexity will continue the company's long-term margin expansion, in our view," the analyst wrote.

"Improving profitability, pristine balance sheet and shareholder friendly policy makes SWKS an attractive Buy in front of the 5th generation of communications," he added.

SWKS Price Action: Shares of Skyworks Solutions had gained 1.31% to reach $137 in pre-market trading Friday.

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