Shares of companies that supply Apple (AAPL) - Get Apple Inc. (AAPL) Report, such as Cirrus Logic (CRUS) - Get Cirrus Logic, Inc. Report, Skyworks Solutions (SWKS) - Get Skyworks Solutions, Inc. Report and Qorvo (QRVO) - Get Qorvo, Inc. Report, rose Tuesday, after Barclays raised target prices for them in light of supply chain disruptions.
Cirrus and Skyworks make semiconductors, and Qorvo makes products for wireless.
These companies “are positioned for beat/raises into earnings and likely outperform into the fall,” said Barclays analyst Blayne Curtis, according to Bloomberg.Companies supplying the iPhone particularly stand to benefit, he said.
More than 80% of Cirrus sales, about 50% of Skyworks’ sales and 30% of Qorvo’s sales come from Cupertino, Calif.-based Apple, according to Bloomberg.
Barclays raised its price target on Cirrus to $90 from $85 and kept its equal weight rating. Barclays lifted its price target on Skyworks to $200 from $185 and maintained its equal weight rating.
Barclays also boosted its price target on Qorvo to $220 from $210, maintaining its overweight rating.
At last check, Apple traded at 136.44, up 1.2%; Cirrus at $85.77, up 4.4%; Skyworks at $190.33, up 4.2%; and Qorvo at 195.84, up 4.5%.
“For AAPL, this is the time the supply chain chatter picks up, and we expect builds to be up year-on-year as AAPL positions around the continued supply tightness,” Barclays said.
Meanwhile, Citi opened a positive catalyst watch on Skyworks, saying supply-chain checks “indicate Apple next gen iPhone builds are tracking above expectations,” Bloomberg reported.
TheStreet.com founder Jim Cramer discussed the connection between Skyworks and Apple Tuesday.
Last week, two key Apple analysts issued reports on the tech titan, one with a buy affirmation (Wedbush’s Dan Ives) and one (Bernstein’s Toni Sacconaghi) seeing the risk-reward proposition as balanced.