Starboard sees big upside in Skyworks after Qorvo merger, Bloomberg reports
Starboard Value believes Skyworks Solutions (NASDAQ:SWKS) has significant upside potential following its recent merger with Qorvo, according to Bloomberg News. The activist investor asserts that the wireless chipmaker remains undervalued, despite the completion of the acquisition in the previous month. Starboard highlights the complementary product portfolios of the two companies as the primary driver of growth opportunities.
Bloomberg reports that Starboard sees the merger as a catalyst for further appreciation of the Skyworks stock price. The deal, valued at approximately $22 billion, involved Skyworks acquiring Qorvo last year, a move prompted by the slowing growth of both companies following Apple's transition to internally developed chips. Starboard expects the combination to achieve at least $500 million in annual cost savings within three years and anticipates operating margins of 30% to 35% within two to three years.
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