Skyworks Solutions' (SWKS) acquisition of Qorvo (QRVO) is favorable due to cost synergies and potential longer-term pricing tailwinds, RBC Capital Markets analysts said.

The company said Wednesday that it received all necessary regulatory clearances to proceed with the transaction and expects the deal to close on Oct. 5.

Analysts said in a Thursday note that over $500 million in cost savings are expected to be realized within 24 to 36 months after the deal closes. This implies that full synergies could be realized only by the second half of 2028.

The investment firm said it expects modest iPhone content growth in 2027 as the product mix shifts toward an internal modem, while overall smartphone growth remains muted and 6G catalysts are still several years away.

RBC reiterated its sector perform rating on the stock and raised its price target to $95 from $70.

Price: 85.81, Change: +0.33, Percent Change: +0.39