Shares of Skyworks Solutions Inc rose as much as 12 percent on Thursday, a day after the cell phone chipmaker raised its fourth-quarter outlook citing improvement in demand, prompting at least two brokers to raise their price targets on the stock.
Morgan Stanley raised its price target on Skyworks stock to $15 from $14 while Caris & Co raised it to $17 from $14.
The raising of the fourth-quarter view is due to strength across both the low end of the handset market -- via Skyworks' relationship with MediaTek, and the high end of the handset market, due to strength at both Samsung Electronics Co Ltd and LG Electronics, analyst Sanjay Devgan at Morgan Stanley said.
The company projected adjusted earnings of 21 cents to 22 cents a share for the fourth quarter. Analysts on average were expecting 19 cents a share, according to Reuters Estimates.
Shares of Skyworks rose as much as 12 percent to $14.25 Thursday morning on Nasdaq, before paring some losses and were at $14.15. (Reporting by Mansi Dutta in Bangalore; Editing by Unnikrishnan Nair)