Semiconductor companies Skyworks Solutions and Qorvo have room to run on Apple's potential release of its foldable iPhone, according to Barclays. The bank has an overweight rating on Qorvo and a $100 price target on shares. It also maintains an overweight rating on Skyworks and a $70 target on shares. Those forecasts imply a gain of 20.4% for Qorvo and 16.8% for Skyworks. "We now view [the timing of the lower-end Apple device launches] as a 'buy the cut event' with more positive catalysts in foldable iPhones, an IP20 anniversary cycle likely to closely follow, and potential content upgrades if we see all AAPL phones move onto a common internal modem platform," analyst Tom O'Malley said Wednesday in a note to clients. The upgrades come as Apple is reportedly expected to release its first foldable iPhone in September. The company is also reportedly aiming to launch a new iPhone Pro model with a glass design in the near future. Newer smartphones usually have more advanced features than their predecessors. That requires the devices to rely on chips with sophisticated structural and power management components from companies such as Skyworks and Qorvo – a boon for the two stocks. To be sure, Apple is likely to focus on courting less affluent consumers by releasing more economical iPhone and MacBook models priced at $599 each this year, according to Barclays. That strategy will likely dampen the iPhone makers "typically strong" seasonal sales in September and December, O'Malley noted. However, "once the news is out we think it will be hard to stay more negative," the analyst added. Barclays' calls go against consensus on the Street, based on LSEG data. Of the 23 analysts covering Qorvo, 20 have a hold rating on shares. The majority of analysts covering Skyworks have put hold ratings on the chipmaker name. Over the past 12 months, shares of Qorvo and Skyworks have risen 43% and 7%, respectively.
