Analysts adjust Qorvo price targets following Q4 top and bottom line beat

Qorvo (NASDAQ:) opened higher Thursday as increasing strength in customer design activity across its businesses resulted in a fourth quarter earnings and revenue beat, prompting analysts to lift their price target on the stock.

The company Q4 EPS of $0.26, $0.13 better than the analyst estimate of $0.13, with revenue for the quarter coming in at $633 million versus the consensus estimate of $621.34M.

QRVO opened the session at $102.27. However, the stock is down 0.3% at the time of writing after giving up its strong gains from earlier in the session.

Following the earnings release, Summit Insights Group analysts upgraded QRVO to Buy. They stated that “as the industry ends the inventory correction cycle, QRVO’s topline is now returning to a growth path primarily due to content gains in a muted demand environment.”

“While we believe QRVO’s financial performance remains tied to the performance of its advanced cellular division, we like QRVO’s diversification strategy into high-performance analog and power management markets,” they added.

Mizuho analysts lifted the firm’s price target on the stock to $102 from $100, maintaining a Neutral rating. They stated that the company reported a good March quarter “and guided to in-line JunQ up 1% q/q to $640M, but looking for a big SepQ ramp.”

“Handset RF inventories are running high at 140-150 days, though see improvements into 2H. Maintaining our Neutral, raising estimates and PT to $102 (prior $100), with good top-line outlook but F24E margins still a headwind,” said the analysts.

BMO Capital analysts lifted the firm’s price target on QRVO to $110 from $105, maintaining a Market Perform rating.

“From an end market perspective, the consumer is far from in a ‘happy’ place, nevertheless, the shoots Qorvo is seeing are green enough for the company to go out on a limb and provide a cadence for revenues/GM for FY24,” said the analysts. “While some of this is driven, finally, by the process of normalization of excess inventory in the channel, part of it is driven by share/content gains at Apple (NASDAQ:).”

Elsewhere Thursday, Morgan Stanley, Susquehanna, Needham & Company, and JPMorgan lifted their price targets on QRVO shares.