UPDATE: Jefferies Initiates Coverage on QUALCOMM with Buy Rating, $80 PT Ahead of Anticipated Multiple Expansion

In a report published Tuesday, Jefferies analyst Peter Misek initiated coverage on QUALCOMM QCOM with a Buy rating and $80.00 price target. In the report, Jefferies noted, “Our analysis indicates that QCOM's QTL licensing business will be above St in CY14 due to the TD-SCDMA to TD-LTE transition combined with the last 5% of QCOM's QTL revs shifting to smartphones. Also, we expect QCOM's QTL chip business to win the WLAN socket in the iPhone 6 or 6s from Broadcom. While the main financial boost is in FY15 and FY16, we expect this news to catalyze multiple expansion, breaking a multi-year downward P/E trend.” QUALCOMM closed on Monday at $67.62.