Qualcomm, Qorvo, Skyworks dip as Rosenblatt says semi sell-off is 'overdone'
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Qualcomm (NASDAQ:QCOM), Qorvo (NASDAQ:QRVO) and Skyworks Solutions (NASDAQ:SWKS) shares dipped early Tuesday as investment firm Rosenblatt noted that semiconductor stocks exposed to the 5G cellular market have seen sharp downturns in recent trading, but the sell-off is "overdone."
Analyst Kevin Cassidy noted that each company is expanding into adjacent internet of things applications, but the aforementioned stocks, along with CEVA (NASDAQ:CEVA), still trade with the handset market, adding that China's COVID-related shutdowns, weaker consumer demand due to inflation and general supply chain disruptions "have investors fearing a major slump in handset demand."
"Forward P/E valuations for these 5G names are at a 5-year low and approaching the 10-year low," Cassidy wrote in a note to clients, adding that the "sell-off is overdone."
Qualcomm (QCOM), Qorvo (QRVO) and Skyworks Solutions (SWKS) shares dipped less than 1% in premarket trading, while CEVA (CEVA) rose more than 2%.
Rosenblatt rates Qualcomm (QCOM), Skyworks Solutions (SWKS) and CEVA (CEVA) as buy, with price targets of $220, $240 and $345 per share, respectively. Conversely, Qorvo (QRVO) is rated neutral with a $190 per share price target. 
Cassidy added that he expects the group to report supply constrained in-line quarters or in-line quarters with commentary discussing constraints being removed in the second-half of the year, allowing for stronger growth.
Last week, Mizuho cut the price target on several semiconductor stocks, including Qualcomm (QCOM), citing multiple headwinds, including weak 5G demand.