Why Qorvo (QRVO) Shares Are Trading Lower Today - Qorvo (NASDAQ:QRVO)

Wells Fargo analyst Gary Mobley downgraded Qorvo, Inc QRVO from Overweight to Equal-Weight and an $85 price target.
To accompany his September quarter EPS preview note, he re-rated.
However, he did not revise his below-consensus FY24 and FY25 (although we saw a risk to consensus estimates).
His lower price target factored in lower peer group multiples and the assumption that QRVO may trade at a discount to the broader chip sectors until the company can diversify the business away from Apple Inc AAPL and the mobile phone market.
His price target assumed QRVO shares traded at only 17.0x our NTM EPS estimate (versus SOX, SWKS & QCOM at 17.0x, 10.0x & 12.0x, respectively).
The discount relative to the rest of the chip sector may be a permanent fixture in the valuation consideration for QRVO, given the company’s high exposure to smartphones and Apple.
Price Action: QRVO shares traded lower by 2.92% at $79.57 on the last check Tuesday.