UPDATE: Goldman Sachs Upgrades Qualcomm (QCOM) to Neutral

Goldman Sachs analyst Rod Hall upgraded Qualcomm (NASDAQ: QCOM) from Sell to Neutral with a price target of $148.00 (from $136.00).

The analyst comments "We upgrade Qualcomm to Neutral as we believe the company is poised to benefit from multiple tailwinds in H2 including an earlier iPhone launch and improving supply situation. Adjusting our model for these puts us more in line with consensus. We increase our Handsets segment estimates to reflect both updated handset market expectations which include Huawei share shift to Qualcomm. We also increase our RFFE estimates driven by the growth in mmWave revenue contribution though we note that we had already been assuming some increase. Note that we do not currently assume material mmWave adoption in China and Europe in our forecast period through FY'23. While weak handset shipment trends in China could act as a downside risk to our royalty estimates, we see Qualcomm likely reporting strong chip numbers in the second half of this calendar year driven by higher iPhone builds and increased TSMC capacity availability. Since we added QCOM to the Americas Sell List on 16 April, 2020, the shares are up 82% vs. the S&P 500 up 55%. In our view, Qualcomm’s licensing settlement with Huawei and stronger RFFE performance likely drove this outperformance. However, the stock has underperformed since the start of this year as handset market data reaffirmed our more cautious stance on that market. Our 12-month price target moves up to $148 consistent with our EPS forecast changes."

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 $139.71 yesterday.

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