Skyworks Solutions (NASDAQ:SWKS) Will Continue to be Driven by Smartphone Demand

In the short term there appears to be no doubt Skyworks Solutions (NASDAQ:SWKS) momentum will continue. Going forward, it still looks like demand could exceed seasonal, based partially on the Chinese New Year.

UBS says, "Our checks indicate that SWKS’ near term momentum remains intact & the company should report solid F1Q11. Our checks further indicate that the component & device inventory remain lean amid strong demand for smartphones & consequently F2Q may be better than seasonal, aided in part by demand from Chinese New Year. We believe that in near/mid term, SWKS should continue to benefit from 3G/Smartphone penetration & also from exposure to leading handset OEMs such as Nokia (NYSE:NOK), Apple (Nasdaq:AAPL) & Samsung."

UBS reiterates a "Buy" on Skyworks Solutions, which closed Wednesday at $30.20, gaining $0.57, or 1.92 percent. UBS has a price target of $35 on Skyworks, increasing it from $28.