JPMorgan analyst Harlan Sur double downgraded Qorvo to Underweight from Overweight with a price target of $90, down from $125, following last night’s fiscal Q2 results. Intensifying global macro headwinds, combined with sizeable excess inventories at Qorvo and customers, pose increasing challenges to the company’s sales growth and profitability recovery in the near- to mid-term, Sur tells investors in a research note. And longer term, the analyst sees increasing risks of China localization efforts to move away from U.S. semiconductor suppliers. He also believes “bloated inventories” on Qorvo’s balance sheet will take some time to work down, thereby weighing on its margins.
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