Market Overview

Bank Of America Turns Incrementally Bullish On Qualcomm, Highlights Multiple Catalysts

Share:
Bank Of America Turns Incrementally Bullish On Qualcomm, Highlights Multiple Catalysts

QUALCOMM, Inc. (NASDAQ: QCOM)'s outlook as a standalone company remains favorable ahead of four potential catalysts that can help support the stock's appreciation, according to Bank of America.

The Analyst

Bank of America's Tal Liani maintains a Buy rating on Qualcomm's stock with an unchanged $75 price target. The analyst added Qualcomm to the firm's "US 1 list," which consists of "a collection of our best investment ideas that are drawn from the universe of Buy-rated US-listed stocks."

The Thesis

An incrementally positive view of Qualcomm's stock is based on four potential catalysts, Liani said in a note.

  • The company's pending merger with NXP Semiconductors NV (NASDAQ: NXPI) will be EPS accretive;
  • Ongoing licensing negotiations with Huawei and Apple Inc. (NASDAQ: AAPL); if successful on both negotiating fronts and the NXP deal closes, Qualcomm's 2019 EPS could rise to $6.85 versus current consensus EPS estimate of $3.80;
  • The departure of CEO Paul Jacobs could signal "deeper changes" including a shift in licensing, restructuring, and M&A strategies; and
  • Steeper cost cutting restructuring.

The catalysts are accompanied with a certain degree of risk, especially negotiations with Apple, but also represent a "particularly attractive buying opportunity," Liani said.

Price Action

Shares of Qualcomm were trading Tuesday around $58.11.

Related Links:

Qualcomm's Days Of Supplying To Apple Appear To Be Numbered

Nomura: Qualcomm Has 'Gun To Its Head' With Broadcom's Hostile Takeover Attempt

Image credit: Kārlis Dambrāns, Flickr

Latest Ratings for QCOM

DateFirmActionFromTo
Aug 2019DowngradesHoldSell
Aug 2019MaintainsBuy
Aug 2019MaintainsBuy

View More Analyst Ratings for QCOM
View the Latest Analyst Ratings

Posted-In: Apple Supply Chain Bank of America Huawei Paul Jacobs Tal LianiAnalyst Color Analyst Ratings Tech Best of Benzinga

 

Related Articles (AAPL + NXPI)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
YEXTMorgan StanleyMaintains15.0
WKMorgan StanleyMaintains42.0
RAMPMorgan StanleyMaintains58.0
PDMorgan StanleyMaintains34.0
HTHTDaiwa CapitalDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Goldman Sachs Initiates On A Slew Of Metal and Mining Stocks

Why A Netflix Departure From This Consumer ETF Could Drive A Bearish Stance