The 5G iPhone is coming, and one Wall Street analyst thinks it will be a big catalyst for Apple Inc (NASDAQ: AAPL) and iPhone supplier Skyworks Solutions Inc (NASDAQ: SWKS).
Raymond James analyst Chris CasoÂ upgraded Apple from Market Perform to Outperform and set a $250 price target.
Caso also upgraded Skyworks from Market Perform to Outperform and set a $90 target.
Caso said concerns about problems with the Intel Corporation (NASDAQ: INTC) 5G modem derailing Appleâ€™s 2020 iPhone launch are no longer relevant following Appleâ€™s settlement with QUALCOMM, Inc. (NASDAQ: QCOM). Opting to use the Qualcomm 5G model ensured Apple wonâ€™t be late to the game, Caso said.
In addition, recent checks suggest Apple will also be offering 5G on lower-priced iPhone models instead of only its high-end â€œMaxâ€ version of the device.
Caso said Skyworks is the biggest semiconductor winner from the 5G iPhone.
Raymond James is forecasting 5% to 10% iPhone unit growth in 2020, with 5G phones representing about 40% of the mix.
Apple shares traded around $203.35 at time of publication, while Skyworks shares traded around $80.31.
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