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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (81741)

11/20/2018 3:30:49 PM

From: Sam

2 Recommendations

Recommended By
Donald Wennerstrom
Return to Sender

Respond to of 95561

Apple iPhone Suppliers Tumble as BofA Chops Target Prices -- Barrons.com
DOW JONES & COMPANY, INC. 3:27 PM ET 11/20/2018

Symbol Last Price Change

AAPL	176.701	-9.159 (-4.93%)
SWKS	69.61	-1.15 (-1.63%)
QRVO	62.19	-0.96 (-1.52%)
CRUS	37.42	-0.6 (-1.58%)
QUOTES AS OF 03:28:15 PM ET 11/20/2018

Bank of America Merrill Lynch believes deteriorating iPhone sales will be problematic for several Apple(AAPL) suppliers.

The firm's analyst Vivek Arya lowered his price targets for the shares of Skyworks Solutions(SWKS) , Qorvo(QRVO) , and Cirrus Logic(CRUS) , citing Monday's Wall Street Journal article that reported Apple(AAPL) cut orders for all three newly released iPhone models.

We "highlight media reports from yesterday morning which suggest that the nature of Apple's(AAPL) production cuts are much broader," he wrote on Tuesday. "It's increasingly apparent that peaking/declining iPhone units are becoming much more of a headwind for mobile-chip suppliers than was anticipated at the start of this year."

Apple (AAPL) stock has fallen more than 18% this month as investors grow increasingly worried about iPhone sales given warnings from suppliers and negative commentary by analysts.

The analyst said the wireless-chip content in iPhones will not grow significantly until fifth-generation wireless technology becomes prevalent in 2020.

"The elimination of carrier subsidies for premium smartphones has reduced the incentive for end-users to upgrade as frequently," Arya wrote. "We think these structural changes to the smartphone market could keep a lid on mobile chip suppliers growth near-term."

Arya lowered his rating for Skyworks stock to Underperform from Neutral. He cut his price target for the company to $75 from $92.

He reiterated his Underperform ratings for Qorvo(QRVO) and Cirrus Logic(CRUS). For Qorvo(QRVO) he reduced his price forecast to $70 from $80. And for Cirrus Logic(CRUS) he lowered it to $31 from $33.

All three supplier stocks are lower in late afternoon trading Tuesday. Skyworks touched an intraday low of $68.65, a level the stock last traded at more than two years ago.

Write to Tae Kim at tae.kim@barrons.com

To: Sam who wrote (81741)	11/20/2018 9:17:56 PM
From: Donald Wennerstrom	1 Recommendation Recommended By Sam Read Replies (2) \| Respond to of 95561

Even Citron has a change of heart, isn't that nice? That gave even Citron a change of heart. That is more than 80% above the original $ 90 target Citron first proposed, though is only about 28 times Nvidia's(NVDA) forward earnings compared with the 33 times implied by the original target. Let's see now. MU and WDC have forward earnings in the 4 to 5 range. So NVDA's earnings are worth about 7 times more than MU and WDC? I always thought Money was Money, but apparently not on Wall Street.