Bank of America's analyst Vivek Arya has revised his target for Qorvo (QRVO, Financial), lowering it from $70 to $65 and maintaining an Underperform rating on the stock. This adjustment reflects growing concerns regarding potential tariff impacts on U.S. chip vendors.
The firm anticipates that the first-quarter earnings might surpass initial forecasts due to a conservative initial outlook and demand increases fueled by tariff-related pull-ins. Despite this optimistic near-term forecast, the firm outlines potential scenarios where tariffs could negatively affect the sector.
In a scenario where tariffs are considered "modest," sales could experience a 4%-6% decline on average. In more severe cases, described as "dire," sales could drop by 9% in 2025 and 12% in 2026. These tariff impacts could also lead to a 12%-13% reduction in earnings per share (EPS) in more moderate cases. Consequently, Bank of America has revised its targets across the semiconductor sector due to these uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Qorvo Inc (QRVO, Financial) is $90.19 with a high estimate of $128.00 and a low estimate of $60.00. The average target implies an upside of 56.01% from the current price of $57.81. More detailed estimate data can be found on the Qorvo Inc (QRVO) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Qorvo Inc's (QRVO, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Qorvo Inc (QRVO, Financial) in one year is $103.24, suggesting a upside of 78.59% from the current price of $57.81. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Qorvo Inc (QRVO) Summary page.
