12:50 AM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We hold our 12-month target at $112, on P/E of 13.8x our FY 26 (Mar.) EPS view, below peers and historical to reflect our view of lackluster growth. We reduce our FY 25 EPS estimate to $6.50 from $7.59 and FY 26 to $8.10 from $9.36. QRVO posts Mar-Q EPS of $1.39 vs. $0.26, beating the $1.21 consensus. Sales rose 49% (-12% sequentially), led by growth from Advanced Cellular (+57%), Connectivity and Sensors (+50%), and High-Performance Analog (+24%). We believe disappointing sales/EPS guide for Jun-Q likely stems from inventory digestion of flagship smartphones (peer Skyworks also seeing a similar drawdown) as well as lower defense revenue. Margins are likely to also compress modestly in Jun-Q given less favorable mix towards mass market 5G offerings and higher-cost inventories. That said, we see a more pronounced recovery in Sep-Q as orders ramp for new devices (e.g., iPhone 16) that should also support strong sequential margin expansion. We note net debt of $936M with FCF of +$600M seen in FY 25.