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Bank Of America Sees QUALCOMM As Determined To Lower Royalties

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In a report published Thursday, Bank of America analyst Tal Liani reiterated a Neutral rating and $85.00 price target on QUALCOMM, Inc. (NASDAQ: QCOM).

In the report, Bank of America noted, “This week we met with carriers, equipment vendors and regulators in Beijing, discussing the Chinese 4G market, demand for smartphones, and the sensitive issue of royalty disputes with Qualcomm. In short, the Chinese cellular market is booming, licenses are awarded, carriers are committed to 4G deployments, and 2014/2015 are expected to be the golden years for base station deployments and customer migration. However, we note that China's regulator and the local vendors are also reluctant to pay Qualcomm its standard royalty fee and see it as an inhibitor to growth. All participants commented on the anti-monopoly investigation, leading us to believe that royalty discounts are not a question of if, but only a question of when and how much. We reiterate our Neutral rating and highlight our key takeaways.”

QUALCOMM closed on Wednesday at $77.20.

Latest Ratings for QCOM

DateFirmActionFromTo
Apr 2019UpgradesEqual-WeightOverweight
Apr 2019UpgradesHoldBuy
Apr 2019MaintainsOverweightOverweight

View More Analyst Ratings for QCOM
View the Latest Analyst Ratings

Posted-In: Bank of America Tal LianiAnalyst Color Reiteration Analyst Ratings

 

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