Skyworks Remains on the 5G Forefront With Strong Q4 Results; Raise FVE to $210, Shares Undervalued

Narrow-moat Skyworks Solutions reported solid fiscal fourth-quarter results and provided investors with a healthy outlook for the December quarter that was in line with our expectations and was more upbeat than the forecast provided by the company’s rival, Qorvo, earlier this week. Qorvo appears to be a bit hampered by its exposure to Chinese Android smartphone makers, as well as supply constraints, whereas Skyworks’ excellent execution appears to be keeping the company above the fray. We raise our fair value estimate to $210 from $200 and still view shares as undervalued.