Skyworks Solutions (NASDAQ:SWKS) recently faced a revision in its stock outlook by Piper Sandler, leading to a reduction in the price target on the company’s shares from $105 to $95. This adjustment follows the company’s financial performance, which showed a mixed set of results for the quarter ending in March. While Skyworks slightly surpassed Wall Street’s expectations for the March quarter, it fell short of the forecast for the June quarter guidance.

The challenges in the mobile demand sector are currently impacting Skyworks Solutions, with analysts viewing this as a short-term issue. The company’s mobile business has been influenced by shifts in market share and a decline in unit sales. Piper Sandler predicts that most of the excess inventory issues in the mobile segment will be resolved by the end of the June quarter, potentially leading to growth in gross margins for the rest of the year.

Piper Sandler maintains a Neutral rating on Skyworks shares, advising a cautious approach until there is a recovery in the mobile business. While the company’s broad markets business remains stable and is expected to keep expanding, Piper Sandler suggests a vigilant stance due to the current uncertainties in the mobile sector.

The outlook from Piper Sandler reflects a wait-and-see strategy, choosing to stay on the sidelines until there is a clear indication of improvement in Skyworks Solutions’ mobile business. The firm’s analysis indicates the potential for growth once the challenges in the mobile segment are addressed.