The Apple device supplier's price target was lowered to $42 from $50 by analysts at Citigroup (C) a day after Apple reported that iPhone sales missed estimates in the third quarter. Apple CEO Tim Cook said that a turbulent environment was responsible for the weak sales.
Apple sold about 74.8 million iPhones in the quarter, missing expectations of 75.46 million units sold. Compounding the problem, Cook said that the company expects iPhone unit sales to decline in the current quarter, but also that "the year will get better as we move forward," according to CNBC.
Despite the declining sales, the company's iPhone continues to be its most consistent revenue generator, accounting for over 60% of the company's revenue according to Statista.
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Citigroup wasnt the only one to downgrade Qorvo.
Today, TheStreet Ratings downgraded the stock to "hold" from "buy" while also lowering its letter grade to C+ from B-. TheStreet noted several strengths in the company, including its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, TheStreet also found weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
TheStreet Ratings uses an algorithmic model to determine a rating for risk-adjusted total return prospect over 12 months.