Morgan Stanley's Semiconductor Picks: Why It's Bullish On Qorvo, Sidelined On Qualcomm, LAM
Portfolio Pulse from Neil Dennis
Morgan Stanley upgraded its semiconductor industry view to Attractive and is bullish on Qorvo, upgrading the stock from Equal Weight to Overweight with a new price target of $134. The firm downgraded Qualcomm to Equal Weight, raising the price target to $132, citing challenges in market share and growth. Lam Research was also downgraded to Equal Weight with a price target of $720, though it remains the firm's top pick in the semi-cap space.
December 08, 2023 | 8:59 pm
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POSITIVE IMPACT
Morgan Stanley upgraded Qorvo to Overweight from Equal Weight and increased the price target from $120 to $134, citing revenue growth and gross margin expansion from 5G transition and a strong year with Samsung and Apple.
The upgrade by Morgan Stanley to Overweight and the increase in price target for Qorvo suggest a positive outlook for the company's stock in the short term, likely due to expected revenue growth and margin expansion.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Lam Research was downgraded by Morgan Stanley from Overweight to Equal Weight with a price target of $720. Despite being the top pick in the semi-cap space, challenges are expected in the next year.
The downgrade to Equal Weight for Lam Research suggests a cautious short-term stance, with the firm expecting challenges that may limit the stock's upside potential.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Morgan Stanley downgraded Qualcomm from Overweight to Equal Weight while raising the price target from $119 to $132, noting the company's past success has set a high bar for future performance, potentially leading to market share loss.
The downgrade of Qualcomm to Equal Weight indicates a neutral to negative short-term outlook for the stock, as the firm anticipates challenges in maintaining market share and identifying new growth drivers.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80