JP Morgan Comments on QUALCOMM

J.P. Morgan has published a research report on QUALCOMM QCOM. In the report, J.P. Morgan writes, "Qualcomm's FQ3 report was a mixed bag. QCT volumes handily beat our expectations but QTL licensing revenues fell 5.3% short of our forecast. EPS guidance was raised yet again for the full year – we believe driven largely by an expected snapback in QTL revenues which are in turn partially driven by better ASP expectations. Unfortunately, sub-seasonal QCT unit guidance in FQ4 combined with the expectation that handset channel inventory will drop below its historical 15-20 week range darkened the mood somewhat. We don't see either as a strong vote of confidence for handset demand heading into the holiday season. On the bright side we continue to believe that QCOM is well positioned to take advantage of growing smartphone demand through both its QTL licensing business and its QCT chipset unit." J.P. Morgan rated QUALCOMM an Overweight with a price target of $57.30. QUALCOMM closed Wednesday at $57.30.