6 Reasons Mizuho is Concerned About Qualcomm's (QCOM) Top Line

Mizuho Securities analyst Vijay Rakesh raised the price target on Qualcomm (NASDAQ: QCOM) to $68.00 (from $65.00) but believes there could be weakness in the top line for 6 reasons:

1) weak handsets

2) multiple OEMs entering re-licensing in 2H19 potentially negotiating lower 5G royalty rates

3) LGE renegotiating in 2019 post the June 30 licensing expiration

4) two other licensees are asking for lower royalty rates post-ruling

5) current NDRC rates at 3.5% for 4G/LTE could go lower

6) chip competition from Huawei Balong 5000 5G chip and ZTE/Samsung ramping 7nm 5G chips

No change to the Neutral rating.

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