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Citi Starts Qualcomm (QCOM) at Neutral

December 21, 2016 6:15 AM EST
Get Alerts QCOM Hot Sheet
Price: $169.30 +0.10%

Rating Summary:
    28 Buy, 21 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Citi's Chris Danely initiates Qualcomm (NASDAQ: QCOM) at Neutral with a $70 price target citing improving core business but sees secular headwinds and "lumpy" NXP accretion holding back any potential share price appreciation.

Danely says: "we do not have confidence in the $500.0 million in synergies and we expect a host of integration difficulties given differences in manufacturing, customer base, and NXP’s merger with Freescale."

Danely also sees long-term growth targets as aggressive, noting slow licensing growth (1% CAGR over past three years) and subdued revenue growth (2% over next couple years) impacting royalty rates and ASPs.

For an analyst ratings summary and ratings history on Qualcomm click here. For more ratings news on Qualcomm click here.

Shares of Qualcomm closed at $66.91 yesterday.



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