“Shares of wireless chip vendor RF Micro Devices (RFMD) are up 22 cents, or 4.3%, at $5.35, after D.A. Davidson’s Aalok Shah raised his rating on the stock to Buy from Neutral, and raised his price target a buck to $7, writing that it stands to be one of the main beneficiaries of smartphone roll-outs by Samsung Electronics and Apple,” Tiernan Ray reports for Barron’s.
“RF is probably also getting a lift today from peer Avago Technologies (AVGO), which yesterday afternoon announced that it was preparing for a ramp in manufacturing of a new smartphone by a large OEM, which many analysts speculate is a reference to Apple,” Ray reports. “RF Micro may benefit from a rumored introduction of a lower-cost iPhone, he thinks… ‘Additional growth should come from the build and launch of the next iPhone, which we believe will take place within C2H. Although details of the iPhone launch are cloudy, recent information leads us to believe that Apple will introduce a lower cost iPhone along with the 5S. If this is the case, we believe there is a possibility RFMD may have secured a PA socket win, its first at Apple, which should lead to increasing dollar content in another smartphone.'”
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