Qorvo Slips as Wells Fargo Downgrades Company

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Qorvo ($NASDAQ:QRVO) is a semiconductor company that makes chips for mobile phones and other devices. The company’s stock slipped on Tuesday after investment firm Wells Fargo downgraded Qorvo’s stock. Wells Fargo analyst Gary Mobley lowered his rating on Qorvo to equal weight from overweight and slashed the firm’s price target to $85 from $130. Mobley pointed out that Qorvo has high exposure to Apple and the mobile phone market.

“Our lower price target is based on lower peer group multiples as well as the assumption Qorvo may trade at a discount to the broader chip sectors until the company can diversify the business away from Apple and away from the mobile phone market,” Mobley wrote in a note to clients. Qorvo’s stock price has been volatile in recent months, and the company is facing pressure to diversify its business away from Apple and the mobile phone market.

Price History

Qorvo Slips as Wells Fargo Downgrades Company: On Tuesday, QORVO stock opened at $79.6 and closed at $78.6, down by 4.1% from previous closing price of 82.0. The downgrade comes as a result of recent media exposure, which has been mostly negative. Qorvo is a leading provider of RF solutions for mobile, infrastructure and defense applications. The company’s products are used in a variety of devices, including smartphones, tablets, base stations, WiFi routers and more.

Despite Qorvo’s strong track record, Wells Fargo has downgraded the company due to concerns about the negative media exposure. Qorvo’s stock is down 4.1% as a result.

VI Analysis

The company’s fundamentals reflect its long term potential. The company has a strong balance sheet with a healthy mix of assets and liabilities. The company’s debt to equity ratio is low and the company has a strong cash position. The company’s return on equity is high and the company’s earnings per share are growing.

The company’s business model is sound and the company has a strong competitive position. The company is exposed to the risk of a slowdown in the global economy, but this risk is mitigated by the company’s strong financial position and diversified business model.

Summary

Investing in Qorvo may not be the best idea at this time as the company has been downgraded by Wells Fargo and the stock price has been moving down. There has been mostly negative media exposure for the company as well.