Skyworks Heads Skyward As Raymond James Upgrades

Skyworks Solutions (SWKS) shares are trading higher this morning after Raymond James analyst Todd Koffman upped his rating on the stock to Strong  Buy from Market Perform, with a target price of $13. The stock closed yesterday at $9.50. In a research note this morning, Koffman cited four reasons for his upgrade of the company, which makes RF chips for the wireless handset sector: He says the company is getting close to its target operating model, and could raise long-term gross margin expectations. Anecdotal information suggests handset inventories have been worked down and industry trends are improving. Handset unit shipments “appear to have bottomed in the March quarter.” The company has diversified customer base. Strength at Samsung and LG should offset exposure to Sony Ericsson , which is struggling. New potential growth drivers with moves into automated meter reading market. He lifts his 2009 EPS estimate to 36 cents, from 34 cents. For 2010, he goes to 76 ... (link)