Zacks Investment Research downgraded shares of SKYWORKS SOLUTIONS, INC. (SWKS) from NEUTRAL to UNDERPERFORM on November 22, 2012, with a target price of $19.00.
Skyworks continues to weather the turbulent economic conditions well. The ramp up in mobile computing and ubiquitous connectivity continue to drive growth for Skyworks. Skyworks continues to benefit from strong underlying demand in the mobile Internet market, driven by market share gains and new product launches. However, earnings estimates have declined after the company reported its fourth quarter results. Although the results were marginally ahead of the estimates, guidance was disappointing and margins continue to be under pressure. In addition, the weak economic environment will adversely impact demand at customers (Samsung) leading to a contraction in growth rates. Given the macroeconomic uncertainty, we downgrade our recommendation to Underperform from Neutral.
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