Standpoint Research Downgrades Qualcomm (QCOM) to Hold

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QCOM Hot Sheet

Rating Summary:
17 Buy, 5 Hold, 0 Sell

Rating Trend: Down

Down

Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23

Standpoint Research downgrades Qualcomm (Nasdaq: QCOM) from Buy to Hold.

The firm commented, "QCOM has jumped $8 (25%) since July 1 and has out-performed the S&P-500 by > 2000 bps since 7/1. The shares are now trading at > 17X trailing earnings and 15.7X the EPS consensus for 2011. Given the recent move on an absolute and relative (to the S&P) basis, we are not comfortable leaving our highest rating attached to this name in the near-term. QCOM has a market cap of more than $60 bln – 17X trailing twelve months earnings is fair value for this name given the current environment. The recent good news is priced in at this point. After watching QCOM break $37.90 to the downside yesterday, we are happy to exit here at $39.90."

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