UBS Lowers Price Target and Estimates on Qualcomm (QCOM), Citing Near-Term Constraints; Capacity Issues Resolved End 2H12
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Price: $165.79 +0.61%
Rating Summary:
25 Buy, 33 Hold, 5 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
25 Buy, 33 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Buy' on Qualcomm (NASDAQ: QCOM) price target lowered from $80 to $78.
Analyst, Parag Agarwal, said, "We believe that 28nm capacity constrains at TSM are transitory and should improve starting in the Sept quarter. While the shortfall in MSM shipments in June Qtr is perplexing, we believe it could be related to potential shift of 28nm capacity to MDM9615, which will likely be used in iPhone 5, and revenue will likely be recognized in Sept Q, when Apple (Nasdaq: AAPL) is expected to begin shipping iPhone 5. We believe that QCOM is the best positioned semi player in smartphone market, but the stock is likely to be range bound till visibility into supply issue improves."
UBS sees capacity issues resolved by end of 2012 with the help of additional foundry partners. Competition is not likely to benefit from QCOM's constraints, but UBS lowers FY12 EPS estimate from $3.64 to $3.40 and FY13 from $4.54 to $4.20.
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 $66.99 yesterday.
Analyst, Parag Agarwal, said, "We believe that 28nm capacity constrains at TSM are transitory and should improve starting in the Sept quarter. While the shortfall in MSM shipments in June Qtr is perplexing, we believe it could be related to potential shift of 28nm capacity to MDM9615, which will likely be used in iPhone 5, and revenue will likely be recognized in Sept Q, when Apple (Nasdaq: AAPL) is expected to begin shipping iPhone 5. We believe that QCOM is the best positioned semi player in smartphone market, but the stock is likely to be range bound till visibility into supply issue improves."
UBS sees capacity issues resolved by end of 2012 with the help of additional foundry partners. Competition is not likely to benefit from QCOM's constraints, but UBS lowers FY12 EPS estimate from $3.64 to $3.40 and FY13 from $4.54 to $4.20.
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 $66.99 yesterday.
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