UPDATE 1-Skyworks shares touch 8-year high on strong outlook

* At least four brokerages raise price targets

* Co “best positioned” among handset chipmakers: Kaufman

* Thomas Weisel, Stifel analysts see margin expansion

* Shares up 12 pct to eight-year high

April 30 (BestGrowthStock) – Skyworks Solutions Inc (SWKS.O: ) shares
rose as much as 12 percent to an eight-year high Friday, a day
after the cellphone chipmaker posted second-quarter results
that blew past estimates and forecast a strong third quarter.

The upbeat results and outlook prompted at least four
brokerages to raise their price targets on the company’s stock.
Three of the four brokerages have a “buy” rating on the stock.

“We believe Skyworks remains one of the best positioned
players in the handset front-end semiconductor market and
regard current valuation levels as attractive,” Kaufman Bros
analyst Suji De Silva wrote in a note.

“Skyworks also continues to see strong growth outside its
core handset market from wireless infrastructure and energy
meter reading content,” said the analyst, who raised his price
target on the stock to $20 from $18. He kept his “buy” rating
on the stock.

On Thursday, the company posted strong results, helped by
expanding opportunities in smartphone, broadband access and
smart grid applications. [ID:nSGE63S0NE]

Thomas Weisel analyst Tore Svanberg raised his price target
on Skyworks’ stock to $19 from $16 and maintained a “market
weight” rating, saying he expects the company to drive
significant operating margin expansion.

“We believe the company could exceed its 25 percent
operating margin in the near to medium term,” Svanberg said.

For the second quarter ended April 2, Skyworks posted an
adjusted operating margin of 20.5 percent.

Stifel Nicolaus analyst Patrick Newton raised his price
target on Skyworks’ stock to $21 from $18 on continued margin
expansion and reiterated a “buy.”

UBS raised its price target to $19 from $17.5 and kept its
“buy” rating.

The company’s shares, which have gained 90 percent of their
value in the past one year, rose as much as 12 percent to
$18.14 Friday on Nasdaq. They pared some of their gains to
trade up 9 percent at $17.68 in late morning trade.

Stock Today

(Reporting by Manasi Phadke in Bangalore; Editing by Ratul Ray

UPDATE 1-Skyworks shares touch 8-year high on strong outlook