Market Overview

UPDATE: Morgan Stanley Initiates Coverage On QUALCOMM

Related QCOM
Markets Mostly Higher As Earnings Season Continues To Impress
Earnings Scheduled For July 23, 2014
Ahead of WWDC, Apple's Expected Connected-Home Salvo (Fox Business)

In a note released Wednesday morning, Morgan Stanley analyst James Faucette initiated coverage on QUALCOMM (NASDAQ: QCOM) with an Equal-weight rating, however, he has not yet set a price target.

The Good
Faucette views the transition of mobile carriers, such as China Mobile, 3G and 4G presents an opportunity for Qualcomm to continue to gain share in the global chipset market.

In addition to opportunities in the chipset market, Faucette says the company's intention to reduce its operating expenses at the exit of fiscal 2014 to levels below that of fiscal 2013.

The Bad
Faucette sees the fair value for Qualcomm's share in the $70-80 range and believes the market has been able to adequately reflect the companies opportunities.

Looking forward he wrote, "We believe that the 3% perpetual growth rate the market has implied post FY 2016 is reasonable, but potentially optimistic."

Posted-In: James Faucette Morgan StanleyAnalyst Color News Price Target Initiation Analyst Ratings

 

Most Popular

Related Articles (QCOM)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free