UPDATE: Nomura Raises PT to $75 on QUALCOMM; Potential Underestimated

Nomura reiterated its Buy rating on QUALCOMM

and raised its price target from $70 to $75. Nomura noted, "Qualcomm shares traded up on earnings last week as concerns over the chipset business (QCT) proved overblown. That said, we believe the market is underestimating substantial growth from licensing (QTL) over the next two years, driven by higher 3G subscriber penetration in the emerging markets. We estimate that for every 1% increase in emerging market 3G penetration increases EPS by $0.15. We are raising our price target of Qualcomm from $70 to 75, based on a multiple of 16x CY13E EPS (ex options) of $4.55." QUALCOMM closed at $61.62 on Monday.