Needham analyst Rajvindra Gill maintained Qorvo Inc (NASDAQ:QRVO) with a Buy and raised the price target from $105 to $130.
Qorvo’s fourth consecutive guide down set expectations significantly lower.
Elevated channel inventory is hurting utilization; gross margin deterioration is now well below Gill’s previous estimate, and weakness persists through F1H24.
Management did point out that China’s handset sell-through has been strong YTD, the first signs of recovery in the analyst’s view.
Gill’s FY24 estimates decreased significantly but became more confident of a trough. Underutilization and inventory dynamics will have flowed through the model just as content gains at the top customers ramp.
The analyst views QRVO as a major beneficiary of the expected upgrade cycle at Apple Inc (NASDAQ:AAPL) and Samsung Electronics Co, Ltd (OTC:SSNLF) with 5G…
