Morgan Stanley Reiterates Overweight on QUALCOMM

Morgan Stanley remains Overweight-rated with a $65/share target price on QUALCOMM

as the company posts another huge beat on both chips and royalties. Morgan Stanley notes, "Both QCT and QTL surprised to the upside. MSM chipments of 156M exceeded the high end of the guidance range of 146-154M and our 151M estimate, and QCT op margin of 24.0% came in a strong 100 bps ahead of our 23.0% est. The 3G market size of $41.4B, up 6% q/q, was ahead of our $39.7B estimate, while the implied royalty rate remained steady at 3.47%." QCOM closed at $59.56 a share yesterday.