NEW YORK (TheStreet) -- Skyworks Solutions (SWKS) - Get Skyworks Solutions Inc. Report stock is down by 1.31% to $75.91 in afternoon trading on Tuesday, after the analog semiconductor maker's stock rating was lowered to "neutral" from "buy" at Citigroup. Analysts maintained their $78 price target on a valuation call.
Shares of Woburn, MA-based Skyworks Solutions have jumped by about 41% from the stock's February lows, indicating the stock is recovering, Citigroup said in an analysts note, Barron's reports.
The firm also downgraded the Apple (AAPL) and Samsung Electronics (SSNLF) supplier because of concerns over gross profit margin and the company's focus on smartphone chips, Barron's noted.
Skyworks Solutions generates about 80% of its revenue from its mobile segment, but the company should diversify its business, analysts added.
Manufacturers of smartphone components could be pressured by lower average selling prices as the smartphone market matures, which would then weigh on overall margins, analysts explained, according to Barron's.
Separately, Skyworks Solutions has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and impressive record of earnings per share growth.
You can view the full analysis from the report here: SWKS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.