Goldman Sachs analyst Toshiya Hari last night upgraded Qorvo (QRVO) to Buy from Neutral and raised his price target for the shares to $79 from $66. The chipmaker closed yesterday down 99c to $69.12.
The analyst says he's beginning to see early signs of smartphone unit stabilization with channel checks indicating near-term upside in China will offset "marginal weakness" at Apple (AAPL). Further, recent checks at the Mobile World Congress suggest that 5G base station deployments are being pulled in and that strength is sustainable through 2020/2021, Hari tells investors in a research note.
He thinks Qorvo has a margin expansion opportunity and that the stocks' current valuation multiples under-appreciate the company's top- and bottom-line growth potential. The analyst views Qorvo's current valuation as "compelling."
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