Benzinga - Susquehanna upgraded three major semiconductor stocks in a Thursday analyst note to investors, signaling a bottom for the semiconductor downcycle in the handset, PC, and consumer end markets.
Analyst Christopher Rolland upgraded:
- Intel Corporation (NASDAQ: INTC) from a Negative to a Neutral rating, and raised the price target from $23 to $26.
- Qualcomm Inc (NASDAQ: QCOM) from a Neutral to a Positive rating, and raised the price target from $130 to $140.
- Skyworks Solutions Inc (NASDAQ: SWKS) from a Neutral to a Positive rating, and raised the price target from $110 to $135.
Rolland’s Intel upgrade is based on the company's ability to stabilize its market share against competitors, improved roadmap execution, and the fading impact of the work-from-home (WFH) PC hangover. Despite facing several long-term headwinds, Rolland said Intel has taken steps to reduce its free cash flow burn by implementing cost-cutting plans and reducing capex.
Rolland praised Qualcomm for successfully refocusing on the midrange market share, benefiting from China's reopening as a catalyst. Additionally, Qualcomm has differentiated its product offerings through artificial intelligence (AI), software, and organic technology. Further, Rolland said the impact of Qualcomm losing a major customer has been baked into investor sentiment, and the company still has potential earnings in the years ahead.
Read also: Qualcomm To Bring ChatGPT-Like AI To Smartphones, And Maybe Even Cars
Skyworks’ upgrade is based on a refocus on the Chinese market, continued growth opportunities with Apple Inc (NASDAQ: AAPL), the development of core competency in a specific technology, and successful diversification through a strategic acquisition, Rolland explained.
The company trades at a discount compared to its peers, making it an attractive semiconductor investment option.
Check out more analyst ratings here.
Latest Ratings for INTC
Mar 2022 | Morgan Stanley | Downgrades | Equal-Weight | Underweight |
Feb 2022 | Raymond James | Upgrades | Underperform | Market Perform |
Feb 2022 | BMO Capital | Maintains | Market Perform |
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