Goldman Sachs Maintains Top Rating on Qualcomm (QCOM) Despite Supply Constraints

Goldman Sachs reiterated their Conviction Buy List rating and $76 price target on Qualcomm (NASDAQ: QCOM) following solid Q2 results but lackluster guidance on supply constraints.

While results were strong as expected Qualcomm's chipset guidance for 144-152 mn units missed Goldman's view of 158mn/157 mn units as a result of supply
constraints on the 28nm process at TSMC. This is likely due to the iPhone 5, they said.

"We believe Qualcomm's shortage is contributing to the iPhone 5 launch timeframe shifting from mid-summer to September/October and likely causing some incremental
market share loss for Qualcomm over the next two quarters at other customers who may delay their launches, ship with lower volumes, or seek alternative chipset vendors."

Goldman lowered FY12 EPS to $3.77 from $3.92 but leave FY13/14 unchanged at $3.97 and $4.73, respectively.

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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