Qorvo (QRVO) Stock Started With 'Market Outperform' Rating at JMP Securities

Qorvo (QRVO) stock was initiated with a "market outperform" rating at JMP Securities on Wednesday.
By Amanda Albright ,

NEW YORK (TheStreet) -- JMP Securities initiated coverage on Qorvo  (QRVO) - Get Report  stock with a "market outperform" rating on Wednesday.

The Greensboro, NC-based company, which was formed about a year ago, has shown solid revenue growth, JMP Securities said.

"Qorvo represents an attractively diversified investment play on growing demand for next-gen wireless LTE, wireless and cable infrastructure, and security and defense technologies, with specific near-term catalysts that include industry moves to carrier aggregation," the firm added.

The firm set a $72 price target on the stock. 

JMP Securities analysts projected Qorvo's fiscal 2016 earnings at $4.61 per share, compared to the Street's earnings estimate of $4.60 per share.

Shares of Qorvo are up by 1.32% to $55.46 in pre-market trading on Wednesday.

Separately, TheStreet Ratings team rates QORVO INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate QORVO INC (QRVO) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • QRVO's very impressive revenue growth greatly exceeded the industry average of 10.8%. Since the same quarter one year prior, revenues leaped by 95.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • QRVO's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, QRVO has a quick ratio of 1.86, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 187.55% to $168.80 million when compared to the same quarter last year. In addition, QORVO INC has also vastly surpassed the industry average cash flow growth rate of -22.28%.
  • The gross profit margin for QORVO INC is rather high; currently it is at 64.79%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, QRVO's net profit margin of 0.62% significantly trails the industry average.
  • QORVO INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, QORVO INC increased its bottom line by earning $2.60 versus $0.20 in the prior year. This year, the market expects an improvement in earnings ($4.60 versus $2.60).
  • You can view the full analysis from the report here: QRVO

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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