NEW YORK (TheStreet) -- Skyworks (SWKS - Get Report) stock has had its price target increased to $55, D.A. Davidson said Thursday. The firm said the company is seeing diversified, end-market strength. A "buy" rating was reiterated.
Must Read: Warren Buffett's 25 Favorite Stocks
Separately, TheStreet Ratings team rates SKYWORKS SOLUTIONS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SKYWORKS SOLUTIONS INC (SWKS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SWKS's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 13.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SWKS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.55, which clearly demonstrates the ability to cover short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 100.95% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SWKS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SKYWORKS SOLUTIONS INC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SKYWORKS SOLUTIONS INC increased its bottom line by earning $1.44 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($2.95 versus $1.44).
- Net operating cash flow has significantly increased by 64.49% to $214.20 million when compared to the same quarter last year. In addition, SKYWORKS SOLUTIONS INC has also vastly surpassed the industry average cash flow growth rate of 3.91%.
- You can view the full analysis from the report here: SWKS Ratings Report