Piper Sandler has trimmed its price target on Qorvo Inc to $90.00 from $110.00 and left its rating at Neutral, citing the company's disappointing guidance for the March quarter and an accelerated contraction of its lower-tier Android business.
The firm highlighted specific competitive dynamics that are affecting Qorvo's near-term revenue profile. Piper Sandler noted share loss in ultra-high band pads at Qorvo's largest customer in upcoming phone models, a development that will reduce revenue from that product area. The research house also said the revenue shortfall will be partly offset by a win in a new, higher-value tablet socket.
Piper Sandler framed the moves as strategic. According to the firm, Qorvo is deliberately sacrificing short-term sales as it exits lower-end Android segments to improve its gross margin profile. The analyst expects the financial benefits of that repositioning to emerge in the fiscal 2027 timeframe, with a projected meaningful uptick in earnings in fiscal years 2027 and 2028 as the strategic changes take hold.
Balance-sheet metrics cited alongside the strategic narrative show the company in a solid liquidity position. Data cited in analyst materials indicate Qorvo has a current ratio of 3.67, suggesting ample short-term liquidity to withstand the transition period. A separate financial health score of 2.6, rated "GOOD", was also noted, together with an assessment that the stock is trading below its fair value.
Management actions add another dimension. Analysts point out aggressive share repurchases by the company, which: signal management confidence in the long-term strategy and reduce outstanding shares while the business reshapes its product mix.
Those assessments come on the heels of Qorvo's most recent reported quarter. For its fiscal third quarter the company posted earnings per share of $2.17 and revenue of $993 million, surpassing a projection of $988.69 million. Despite that outperformance, Qorvo issued guidance for the fiscal fourth quarter that calls for approximately $800 million in revenue, well below consensus estimates of $904 million.
Analysts attribute the weaker guidance to specific mobile-market pressures. The company cited challenges tied to its Android business, including the strategic exit from lower-margin segments and headwinds from memory pricing. These factors have prompted several firms to revisit their valuations and ratings.
Responses from other brokerages have been mixed. Craig-Hallum lowered its price target to $95 while maintaining a Buy rating. Mizuho cut its target to $70 and cited a Neutral stance. Morgan Stanley reduced its price target to $84 and kept an Equalweight rating, pointing to pressures in Qorvo's mobile business including share loss in forthcoming iPhone models. KeyBanc reiterated a Sector Weight rating and emphasized the strength of the third-quarter results despite Android-related concerns.
Taken together, the commentary underscores a mixed near-term outlook for Qorvo. The company appears to be trading near the intersection of solid liquidity and operational repositioning - strong balance-sheet metrics and buybacks on one hand, and mobile revenue headwinds and product-share losses on the other. Piper Sandler's revised target and peers' reactions reflect that tension while projecting that the structural margin improvements will take time to materialize, with a clearer payoff expected around fiscal 2027.
Key points
- Piper Sandler cut Qorvo's price target to $90 from $110, maintaining a Neutral rating due to disappointing March quarter guidance and an accelerated reduction in lower-tier Android exposure.
- Qorvo reported fiscal third-quarter EPS of $2.17 and revenue of $993 million, beating projections, but guided fiscal fourth-quarter revenue to about $800 million versus $904 million consensus.
- Balance-sheet indicators cited include a current ratio of 3.67 and a financial health score of 2.6 rated "GOOD"; management has been actively repurchasing shares.
Risks and uncertainties
- Ongoing revenue pressure from share loss in ultra-high band pads at a largest customer, which affects the mobile device sector and the semiconductor supply chain.
- Potential near-term earnings volatility as Qorvo exits lower-margin Android segments and navigates memory pricing impacts, which could affect quarterly results for device OEMs and component suppliers.
- Execution risk around the strategic pivot to higher-margin products, including the timing of expected benefits that analysts project will not fully materialize until fiscal 2027.