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Morning Bell With Jim Cramer: Skyworks and Apple - Shhh!

TheStreet Founder Jim Cramer takes a look at Skyworks Solutions and its hush-hush relationship with computer-and-phone giant Apple.
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Stock futures fell Wednesday following another record close for the S&P 500.

TheStreet Founder Jim Cramer and TheStreet's senior portfolio analyst, Jeff Marks, discussed Skyworks Solutions  (SWKS) - Get Free Report and the semiconductor company's relationship with Apple  (AAPL) - Get Free Report.

Apple Analysts Mixed: Balanced Valuation or 'a Top Tech to Own'

"If you think that Apple is going to do well, that means that they have a ton of Skyworks in there," Cramer said.

But investors may not know, and the two men agreed, that the first rule of having Apple as a customer is never saying Apple is a customer. 

Skyworks: 'Never Say Apple'

"Now, a lot of this is very difficult for people who have never traded Skyworks because they're going to come out and say, 'Apple is a big customer,' because Apple will not let them," Cramer explained.

On Tuesday Barclays its raised target prices for Skyworks and several other Apple suppliers in light of supply-chain disruptions.

"Apple is the only company that forbids you from mentioning them," Cramer said. "If you do mention them, you’ll lose their business."

Meanwhile, Citi opened a positive catalyst watch on Skyworks, saying supply-chain checks “indicate Apple [next-generation] iPhone builds are tracking above expectations,” according to the Fly. 

"You're never going to hear from Skyworks, 'wow, did we get a big order from Apple,' but that may be what’s happening," Cramer said.

Citi analyst Atif Malik said he saw upside to consensus September-quarter expectations, given that Apple represents about half of sales for Skyworks.

He noted that Wall Street estimates do not include a contribution from the Silicon Laboratories  (SLAB) - Get Free Report infrastructure and automotive business unit acquisition. That purchase is expected to close in the September quarter and be immediately accretive. 

Malik keeps a neutral rating and $182 price target on Skyworks shares.

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