Qorvo extends rally as Morgan Stanley turns bullish on Starboard stake news
21/01/2025 16:07
** Shares of chipmaker Qorvo QRVO.O up 3.1% to $86.84 early
Tues after Morgan Stanley upgrades to 'overweight' from
'equal-weight' in wake of Starboard taking a big stake
** QRVO shares on Fri closed up >14% after the activist investor
revealed 7.7% stake worth more than $500 mln, looking to boost
the Apple AAPL.O supplier's weak share price
** Morgan Stanley boosts PT on QRVO from $90 to $106,
implying ~26% upside to stock's last close
** QRVO has struggled to achieve margin targets, but
activist involvement could '"inject some urgency" and unlock
value, Morgan Stanley analyst Joseph Moore wrote in note
** Moore sees potential for a "renewed earnings recovery
path," adding he believes QRVO can achieve $9.63 in EPS if
strategy shifts from a "growth through diversification" mindset
into one that optimizes around co's core radio frequency
proficiency
** Of 28 analysts covering QRVO, recommendation breakdown is
4 "strong buy" or "buy", 21 "hold" and 3 "sell" or "strong
sell", per LSEG data
** Median PT of $87.13 down from $120 on Oct 21
** With move on the session, shares up ~24% YTD. In 2024,
stock shed 38% while Philadelphia Semiconductor index .SOX
advanced 19%
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))