Qualcomm Removed From FBR's 'Top Picks'

FBR & Co downgraded QUALCOMM, Inc. QCOM from Market Perform from Outperform and removed the company from its "Top Picks" following news that Samsung Elect Ltd SSNLF would use its own chip in the Galaxy S6 model. The move away from Qualcomm represents a "material change" to the analysts' thesis, despite estimates that it will only be a $200 million impact to revenue.

FBR noted that it still expects Verizon Communications Inc. VZ and Sprint Corp S to need Galaxy S6 models with the Qualcomm chip due to legacy networks; however, Samsung's use of its own baseband is a clear change in signals.

In addition to downgrading Qualcomm and removing it from its Top Picks, FBR lowered its price target to $72 from $80.

Shares of Qualcomm were down 1.6 percent at $66.98. The company has lost 9.7 percent year-to-date.