Qualcomm (QCOM) PT Raised to $187 at Morgan Stanley as Margin Increases Offset Supply Driven Inventory Constraints

Morgan Stanley analyst Joseph Moore raised the price target on Qualcomm (NASDAQ: QCOM) to $187.00 (from $180.00) after the company slightly lowered its handset unit growth projection for the year - from high single digits to mid-to-high single digits - due to supply constraints. Despite this problem impacting volume, 5G mix, pricing, and RF content carry revenues and margins materially higher.

The analyst reiterated an Overweight rating, stating "the company beat our revenue and earnings estimates by 5% and 15%, and guided revenues and earnings 7% and 15% above consensus, and guided to 20% earnings growth in FY22, also about 15% higher than our estimates. And all of that happened while the company modestly downticked on market growth for the year, highlighted reasonable growth expectations for CY22, and said that there was some pull forward of RF into September that will create tougher comps in that business."

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