In a note released Wednesday, Raymond James analyst J. Steven Smigie maintained a Strong Buy on Skyworks Solutions (NASDAQ: SWKS) and raised the price target from $50 to $55.
The main reason behind the raised price target appears to be the company's issuance of raised guidance Wednesday morning. Skyworks has raised its revenue and EPS guidance from $535 to $570 million and from $0.73 to $0.80, respectively.
Smigie also pointed to the deal between Skyworks and Panasonic as a potential bump in margins for Skyworks. He explained that, as a result of the deal, Skyworks will no longer have to pay an outsourcing fee to Panasonic. To support this, he noted that the company is forecasting 100 basis point accretion to its gross margin in fiscal 2015.
Following the release of this note, shares of Skyworks are trading up 1.68 percent to $46.41.
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