In “Golden Age” of RF, Enough Food on the Table for All to Eat Well

Semiconductors | Ian Ing, Executive Director/Senior Analyst | September 24, 2014 (Read Report)

We are initiating Skyworks Solutions (SWKS) and RF Micro Devices (RFMD) with Buy ratings and respective 12-month price targets of $68 and $15. We see both suppliers (along with AVGO (Buy,$87.86, $88 PT)) as beneficiaries of a “golden age” of smartphone RF vendors as the TAM grows double digits with enhanced visibility, as the companies essentially start specifying/co-developing integrated solutions with OEMs 2+ years out. Risks to our positive view on smartphone RF are a long, slow tail of 2G to 3G migration and the potential for disappointment in China 4G. (Read more)