Should you buy Skyworks stock on the post-earnings dip?

Shares of Skyworks Solutions Inc (NASDAQ: SWKS) are down 5.0% this morning after the chipmaker disappointed in terms of guidance for its current financial quarter.

BMO downgraded Skyworks stock today

The semiconductor stock is weighed also because a BMO Capital Markets analyst downgraded it to “market perform” on Tuesday.

Ambrish Srivastava turned dovish as he expects the company’s margins to remain under pressure for a few quarter at least.

In Q2, though, the Nasdaq-listed firm matched Street estimates, as per its press release last night. Skyworks stock is now down nearly 20% versus its year-to-date high.

Skyworks shares lack meaningful upside

Srivastava also lowered his price objective on the semiconductor stock today to $100. That’s roughly in line with where it’s trading at writing.

His downgrade was based also on a slow recovery in China that’s contributing to worsening the inventory side of the equation. The BMO analyst said in his note:

He’s not the only who turned negative following the quarterly update last night. JPMorgan analyst Harlan Sur also had a similar view on Skyworks stock in his report on Tuesday.