Wolfe Research Reiterates Outperform Rating on Qorvo Inc (QRVO)

Wolfe Research analyst Chris Caso reiterated an Outperform rating and $120.00 price target on Qorvo Inc (NASDAQ: QRVO).

The analyst comments "During its Investor Day, QRVO announced its new target model. The company's new model calls for >10% LT revenue growth CAGR, driven by mid-to-high-single digit growth in its ACG segment (with 5% SAM growth), DD % growth in its HPA segment (with ~20% SAM growth), and strong DD % growth in its CSG segment (with 20% SAM growth). The company expects to drive >50% GMs driven by lower capital intensity, improved factory efficiency, process advancements, economies of scale and diversification. QRVO targets OpMs between 30-35%, inline with peak prior cycle OMs ~33.4% (FY22); OpMs have generally been in mid-high 20s during prior cycles. It appears that margin expansion is intended to come from mix, as the company eventually intends to drive non-handset business to over 50% of revenue over time. The company presentation is ongoing, we will have further commentary following the conclusion of the event."

For an analyst ratings summary and ratings history on Qorvo Inc click here. For more ratings news on Qorvo Inc click here.

Shares of Qorvo Inc closed at $102.36 yesterday.

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