Wednesday, June 24, 2015

Seeking Alpha: Qorvo Hoping To Show One Plus One Is More Than Two

The smartphone space is a weird place these days. On one hand, there are worries that the best days of growth in the high end are already past. On the other hand, companies like Qorvo (NASDAQ:QRVO) and Avago (NASDAQ:AVGO) are looking at a world that still has a lot of room to adopt LTE handsets, each one of which offers richer switch, amplifier, and filter content.

I fully expect that Qorvo will eventually have to contend with lower-cost China-based RF component manufacturers, just as Qualcomm (NASDAQ:QCOM) has had to contend with lower-cost players in baseband, but I don't believe that cancels out the opportunity. Mid-to-high single-digit long-term revenue growth coupled with FCF margins in the 20%'s can support a fair value in the high $80's and I wouldn't rule out the possibility of Qorvo gaining share and/or exceeding its cost synergy targets.

Read the full article here:
Qorvo Hoping To Show One Plus One Is More Than Two

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