Qualcomm (QCOM) PT Raised to $70 at Credit Suisse; Solid Q3 Builds Confidence
Credit Suisse analyst K. Garcha reiterated an Outperform rating and raised his price target on Qualcomm (NASDAQ: QCOM) to $70.00 (from $67.00) following strong Q3 results.
Garcha commented, "Results beat, guidance conservative, confidence rebuilding. Qualcomm reported F3Q16 results ahead of expectations across the main business lines, with revenues of $6.0bn (vs. consensus of $5.6bn) and EPS of $1.16, ahead of CS est. of $1.00 and consensus of $0.97. While part of the beat came in from the catch-up payments to QTL (from both LG and within China), we believe ongoing Chinese compliance could sustain this. We see continued improvement in QCT margins and compliance in China driving the company towards ~$5.60 of LT EPS power over time. With a material EPS beat (~16%) and a return to EPS growth, we see that company now delivering an inflection in fundamentals (see our note A point of inflection). We reiterate our Outperform rating and raise our PT to $70 (from $67), raising EPS by 4% to $4.32 from $4.17, and raising FY17 EPS by 4%, to $5.21 from $5.03."
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 $55.82 yesterday.