UPDATE: Oppenheimer Assumes/Downgrades Qualcomm (QCOM) to Perform

Oppenheimer assumed/downgraded Qualcomm (NASDAQ: QCOM) from Outperform to Perform and removed its price target (prior $67). Analyst Rick Schafer pointed out that its core mobile business continues to face pressure from flattening smartphone growth.

"While we recognize QCOM's leading position in modem and single-chip integrated chipset solutions, we believe the company is over-exposed to the mobile market, with its diminishing growth and increasing competition. We believe both sides of the business face structural issues with no clear solution in sight. We believe QCOM will be under pressure until they are able to diversify towards sticker, more profitable markets," said Schafer.

"With increasing compliance, SAM expansion, and cost cutting, we have a favorable longer-term view. However, lacking privileged insight into any planned shift in strategic/M&A tact on the part of management, we see risk reward in balance and are stepping to the sidelines here," added the analyst.

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 $52.38 yesterday.

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