A Closer Look at 16 Analyst Recommendations For Qualcomm

In the last three months, 16 analysts have published ratings on Qualcomm QCOM, offering a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $160.62, a high estimate of $180.00, and a low estimate of $150.00. Witnessing a positive shift, the current average has risen by 4.47% from the previous average price target of $153.75.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Qualcomm among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Qualcomm. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Qualcomm compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Qualcomm's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Qualcomm's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Qualcomm analyst ratings.

Delving into Qualcomm's Background

Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones, as well as chips into automotive and Internet of Things markets.

Key Indicators: Qualcomm's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Qualcomm's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.99% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Qualcomm's net margin is impressive, surpassing industry averages. With a net margin of 27.85%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 12.4%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Qualcomm's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 5.36%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 0.67, Qualcomm faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.