Market Overview

Credit Suisse Regains Confidence In Qualcomm, Raises Price Target To $70

Share:
Related QCOM
Vetr Crowd Downgrades Blackberry After String Of Positive News
What The Massive SoftBank Investment 'Vision Fund' Means For Tech
The Vetr community has downgraded $QCOM to 3-Stars (Vetr)

QUALCOMM, Inc. (NASDAQ: QCOM) reported its F3Q16 results ahead of expectations and its guidance appears conservative, Credit Suisse’s Kulbinder Garcha said in a report. He maintained an Outperform rating on the company, while raising the price target from $67 to $70.

Qualcomm reported its quarterly revenues at $6.0bn, ahead of the consensus expectation of $5.6bn, and its EPS at $1.16, above the consensus of $0.97. “While part of the beat came in from the catch-up payments to QTL (from both LG and within China), we believe ongoing Chinese compliance could sustain this,” analyst Kulbinder Garcha wrote.

QCT Performing Better Than Expected

QCT revenues came in at $3.9bn, representing 15 percent sequential improvement. “Management sounded confident regarding the roadmap, and pointed to the recent strength in China. In addition, we believe the company's guidance on QCT margins already includes a potential loss at Apple,” Garcha mentioned.

The analyst expects QCT margins to continue improving. This, along with compliance in China, should enable Qualcomm to achieve a long-term EPS of ~$5.60.

Infection Point

“With a material EPS beat (~16%) and a return to EPS growth, we see that company now delivering an inflection in fundamentals,” Garcha commented. The EPS estimates for FY16 and FY17 have been raised from $4.17 to $4.32 and from $5.03 to $5.21, respectively.

Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!

Latest Ratings for QCOM

DateFirmActionFromTo
May 2017JP MorganUpgradesNeutralOverweight
Apr 2017Standpoint ResearchUpgradesHoldBuy
Apr 2017RosenblattDowngradesNeutral

View More Analyst Ratings for QCOM
View the Latest Analyst Ratings

Posted-In: Credit Suisse Kulbinder GarchaAnalyst Color Long Ideas Price Target Reiteration Analyst Ratings Trading Ideas

 

Related Articles (QCOM)

View Comments and Join the Discussion!