Investing.com -- Piper Sandler upgraded Qorvo Inc (NASDAQ: QRVO ) shares to "overweight" on potential operational and capital efficiencies driven by Starboard Value’s recent involvement. The activist investor disclosed a 7.7% stake in Qorvo, valued at approximately $500 million, signalling plans for a turnaround strategy similar to its previous successes in the semiconductor sector.
Piper Sandler highlighted Starboard’s proven track record with companies like ON Semiconductor (NASDAQ: ON ) and Marvell (NASDAQ: MRVL ) Technology, where it implemented cost controls, optimized manufacturing footprints, and facilitated strategic divestitures. For Qorvo, the firm estimates potential operating expense savings of $250 million to $300 million, aligning its cost structure with peers like Skyworks Solutions (NASDAQ: SWKS ).
Starboard could streamline Qorvo’s plant operations and unlock higher market value for its analog business. Qorvo’s shares have dropped 20% over five years compared to a 175% gain in the Philadelphia Semiconductor Index. Analysts believe the activist’s involvement offers a clear path for improvement. Piper Sandler raised its price target for Qorvo to $110, on opportunities for operational enhancements and strategic focus.