J.P. Morgan Reiterates Neutral Rating, $60 PT on QUALCOMM on Mixed Factors

In a report published Thursday, J.P. Morgan analyst Rod Hall reiterated a Neutral rating and $60.00 price target on

. In the report, J.P. Morgan noted, “Qualcomm reported an in line quarter but then guided weak for both FQ1 and F2014 topline growth. The main surprise on the call was that management appears to expect tepid QCT margin progress in early 2014 with F2014 guidance set at just 18%-20%. CDMA unit guidance for 2014 was a slight 1.3% off of our adoption model prediction. We see this as supportive of our February downgrade of QCOM to Neutral on the basis that growth would slow in 2014. On a brighter note QTL ASPs were 3% better than we had forecast in the quarter and are guided to be down only 1% in F2014. As the November 20 analyst day approaches we believe investors should be taking profits to avoid what we continue to see as a tougher F2014 for QCOM. Reiterate Neutral.” QUALCOMM closed on Wednesday at $69.74.