Nomura Securities Semiconductor Monitor: 4G phones from Verizon (VZ): Positive for Qualcomm (QCOM); Raising PT on Avago (AVGO)
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Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
18 Buy, 30 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Nomura Securities Semiconductor Monitor: 4G phones from Verizon: Positive for Qualcomm; Raising PT on Avago.
Analyst, Romit Shah, said, "Verizon (NYSE: VZ) is aiming to only qualify 4G LTE-enabled phones next quarter in order to offer higher speed mobile data services to consumers. We believe Qualcomm (Nasdaq: QCOM) is well positioned with a solid LTE roadmap, though in our opinion this is reflected in Street estimates of 18% revenue growth in 2012. On the other hand, we believe the Street is underestimating how fast Avago’s (Nasdaq: AVGO) wireless business will grow this year. LTE has more frequency bands, which will require more filters as compared to 3G handsets. Our price target on Avago moves from $35 to $40 (14.5x our CY12 EPS estimate of $2.76). Key events this week:
Tuesday - We expect Broadcom (Nasdaq: BRCM) (Buy, PT $45) on Tuesday to guide earnings modestly above consensus driven by better than seasonal growth in mobile and wireless (Apple (Nasdaq: AAPL), Nokia (NYSE: NOK)).
Wednesday - We expect Qualcomm (Neutral, PT $55) to report FQ1 results above our estimates, and guide inline for March as strength in QTL is offset by sub-seasonal chipset performance.
Thursday – AMD (NYSE: AMD) hosts an analyst day, which we believe will be focused on manufacturing execution and the notebook product roadmap.
Analyst, Romit Shah, said, "Verizon (NYSE: VZ) is aiming to only qualify 4G LTE-enabled phones next quarter in order to offer higher speed mobile data services to consumers. We believe Qualcomm (Nasdaq: QCOM) is well positioned with a solid LTE roadmap, though in our opinion this is reflected in Street estimates of 18% revenue growth in 2012. On the other hand, we believe the Street is underestimating how fast Avago’s (Nasdaq: AVGO) wireless business will grow this year. LTE has more frequency bands, which will require more filters as compared to 3G handsets. Our price target on Avago moves from $35 to $40 (14.5x our CY12 EPS estimate of $2.76). Key events this week:
Tuesday - We expect Broadcom (Nasdaq: BRCM) (Buy, PT $45) on Tuesday to guide earnings modestly above consensus driven by better than seasonal growth in mobile and wireless (Apple (Nasdaq: AAPL), Nokia (NYSE: NOK)).
Wednesday - We expect Qualcomm (Neutral, PT $55) to report FQ1 results above our estimates, and guide inline for March as strength in QTL is offset by sub-seasonal chipset performance.
Thursday – AMD (NYSE: AMD) hosts an analyst day, which we believe will be focused on manufacturing execution and the notebook product roadmap.
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