Overweight Rating for Qualcomm (QCOM)

Rod Hall, James M Kisner and Rajat Gupta, analysts at JPMorgan, recommend an Overweight rating for Qualcomm (NASDAQ, QCOM), a provider of digital wireless telecommunications products. The stock has been trading at $36.16 and the target price is $40.50. The company beat analysts’ estimates in its third fiscal quarter performance report. The reported margins were at 24%, ahead of 22% forecasts of analysts. The revenue of $1.69bn was ahead of the analysts’ estimate of $1.63bn, primarily due to strong chip shipments. Guidance for the fourth fiscal quarter has also been encouraging. The analysts have revised the 2011 Fiscal Year EPS estimates upwards by 1.1% to $2.58.