BUZZ-Qorvo extends rally as Morgan Stanley turns bullish on Starboard stake news

Shares of chipmaker Qorvo QRVO.O up 3.1% to $86.84 early Tues after Morgan Stanley upgrades to 'overweight' from 'equal-weight' in wake of Starboard taking a big stake

QRVO shares on Fri closed up >14% after the activist investor revealed 7.7% stake worth more than $500 mln, looking to boost the Apple AAPL.O supplier's weak share price

Morgan Stanley boosts PT on QRVO from $90 to $106, implying ~26% upside to stock's last close

QRVO has struggled to achieve margin targets, but activist involvement could '"inject some urgency" and unlock value, Morgan Stanley analyst Joseph Moore wrote in note

Moore sees potential for a "renewed earnings recovery path," adding he believes QRVO can achieve $9.63 in EPS if strategy shifts from a "growth through diversification" mindset into one that optimizes around co's core radio frequency proficiency

Of 28 analysts covering QRVO, recommendation breakdown is 4 "strong buy" or "buy", 21 "hold" and 3 "sell" or "strong sell", per LSEG data

Median PT of $87.13 down from $120 on Oct 21

With move on the session, shares up ~24% YTD. In 2024, stock shed 38% while Philadelphia Semiconductor index .SOX advanced 19%

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))