UPDATE: Cantor Fitzgerald Reiterates Buy Qualcomm, Raises PT to $69
Cantor Fitzgerald has reiterated its Buy Rating on Qualcomm Incorporated (NASDAQ: QCOM), Raising price target to $69 from $66.
Cantor Fitzgerald noted, "Qualcomm currently has $26.8 billion ($15.50 per share) in cash. While we would be comfortable with a 15x cash adjusted multiple on forward earnings and a 5x multiple on adjusted market cap to revenues, we choose to use more conservative numbers. As a cash adjusted P/E multiple, we use a 11x multiple on our CY:13 estimate and add back the cash to arrive at a price of $66. As an adjusted market cap to revenues multiple we use a 4x multiple (a 20% discount to five-year average) and add back the cash to arrive at a price of $72.00. Averaging and rounding up gives us a target price of $69 per share, up from our prior $66."
Qualcomm closed at $62.50 on Wednesday.
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