Sterne Agee Downgrades Skyworks Solutions to Neutral

Sterne Agee downgraded its rating on Skyworks Solutions (NASDAQ: SWKS) to Neutral from Buy. In a research report published today, Sterne Agee suggested the company will face stiff competition from its rivals.

In the report, Sterne Agee states, "We are downgrading SWKS from a Buy to a Neutral. While SWKS has a dominant position in 3G, we believe the market is starting to get more competitive with RFMD (Buy, $6.05, PT$10) and AVGO (Buy, $33.52, PT$45) getting some of the newer handset design wins. Also we believe margin leverage could start to slow."

On Thursday, Skyworks added 1.47% to its value to close the day at $24.92. Its shares fell in today's pre-market trading, however, shedding 2.41% of their value to stand around $23.32.