What happened Shares of Skyworks Solutions (NASDAQ: SWKS) have climbed to record highs today, up by 5% as of 11:10 a.m. EST, after UBS modestly increased its price target. However, UBS remains on the sidelines overall, reiterating a neutral rating on the stock. So what Analyst Timothy Arcuri raised his price target on Skyworks shares from $181 to $190. The valuation adjustment comes just a few days after UBS expressed positive opinions about the tech company's pending $2.75 billion acquisition of Silicon Labs' (NASDAQ: SLAB) infrastructure and automotive business, which was announced last week. Image source: Getty Images. The deal is expected to be immediately accretive to earnings per share while also expanding Skyworks' total addressable market (TAM) from $14 billion to $20 billion, according to Arcuri's estimates. On top of that, the acquisition is highly complementary to Skyworks' current business and will create additional opportunities to cross-sell existing customers. Now what UBS estimates that the transaction will add around $400 million in annual revenue. Additionally, the deal should help Skyworks expand gross margins and improve profitability. Skyworks currently faces meaningful customer-concentration risk, as Apple is the company's largest customer by far. The Mac maker represented 56% of total revenue last fiscal year, and UBS estimates that Apple now represents approximately two-thirds of sales. Acquiring the infrastructure and automotive segment from Silicon Labs will help diversify the customer mix, as that business has no customers that represent 10% of revenue. 10 stocks we like better than Skyworks SolutionsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Skyworks Solutions wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Evan Niu, CFA owns shares of Apple. The Motley Fool owns shares of and recommends Apple and Skyworks Solutions. The Motley Fool recommends Silicon Laboratories and recommends the following options: long March 2023 $120.0 calls on Apple and short March 2023 $130.0 calls on Apple. The Motley Fool has a disclosure policy.Source