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Barclays: Foldable iPhone Boosts Skyworks, Qorvo Stocks

Barclays Securities has upgraded its ratings on semiconductor companies Skyworks Solutions and Qorvo, predicting that Apple's potential foldable iPhone launch will significantly boost both stocks. The bank set a $100 price target for Qorvo and $70 for Skyworks, citing multiple positive catalysts. These include the expected foldable device release, the launch of lower-priced Apple models, and the potential standardization of internal modem platforms. Notably, Barclays' bullish forecast runs counter to the current consensus among analysts, who largely maintain 'hold' ratings on both chipmakers.

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Barclays: Foldable iPhone Boosts Skyworks, Qorvo Stocks

Barclays Securities has issued an optimistic outlook on semiconductor firms Skyworks Solutions and Qorvo, citing potential benefits from Apple's anticipated foldable iPhone launch. The bank has upgraded its ratings and set specific price targets for both companies, suggesting significant near-term growth potential.

Barclays' Investment Thesis

According to an analyst note, the positive catalysts for these semiconductor suppliers are multifaceted. Key drivers highlighted by Barclays include:

  • Foldable iPhone Launch: The expected debut of Apple's first foldable iPhone in September is cited as a primary catalyst.
  • Lower-End Devices: Barclays views the upcoming launch of more affordable Apple devices as a 'buy the cut event.'
  • Industry Cycles: The potential for an IP20 anniversary cycle to follow is also noted as a positive factor.
  • Modem Standardization: The possibility of all Apple phones migrating to a common internal modem platform is viewed favorably.

Stock Ratings and Price Targets

Barclays has assigned the following ratings and price targets:

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  • Qorvo: Maintained an 'overweight' rating with a price target of $100, implying a potential gain of 20.4%.
  • Skyworks Solutions: Maintained an 'overweight' rating with a price target of $70, implying a potential gain of 16.8%.

Market Context and Divergence from Consensus

The analysis suggests that newer, advanced smartphones—like potential Pro models with glass designs—require sophisticated structural and power management chips, which benefits both Qorvo and Skyworks. However, the report notes that Apple's strategy to launch more economical iPhone and MacBook models (priced around $599) might temper historically strong seasonal sales in September and December.

Crucially, Barclays' positive calls contrast with the prevailing market sentiment. Data from LSEG shows that:

  • For Qorvo, 20 out of 23 covering analysts currently hold a 'hold' rating.
  • For Skyworks, the majority of covering analysts have assigned 'hold' ratings.

Over the past year, Qorvo and Skyworks shares have seen gains of 43% and 7%, respectively.

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