Qualcomm (QCOM) PT Raised at Nomura Following Q3 Earnings
Nomura Securities analyst Romit Shah raised his price target on Qualcomm (NASDAQ: QCOM) from $75 to $78 following Q3 results.
"Qualcomm has been underperforming the market consistently throughout 2013 due to investor concerns over declining handset asps, expense growth, weak handset shipments and a rising share count. However, yesterday's earnings call may have appeased investors on several fronts, and as such, we would expect much better share performance in 2H13. Qualcomm strongly suggested that the timing of new product launches should drive significant growth in the Dec-Q. We believe the biggest drivers are new product launch (Apple) and China Mobile. However, Qualcomm is still not showing much leverage. We expect share count to decline in Sept for the first time in several periods. Our price target increases from $75 to $78 based on a multiple of 15x. Qualcomm’s valuation is very attractive in our view, trading at 12x CY14E EPS or a 14% discount to the S&P. CY13E EPS at $4.54; FY14E EPS at $4.99."
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 $61.39 yesterday, with a 52 week range of $56.30-$68.50.
"Qualcomm has been underperforming the market consistently throughout 2013 due to investor concerns over declining handset asps, expense growth, weak handset shipments and a rising share count. However, yesterday's earnings call may have appeased investors on several fronts, and as such, we would expect much better share performance in 2H13. Qualcomm strongly suggested that the timing of new product launches should drive significant growth in the Dec-Q. We believe the biggest drivers are new product launch (Apple) and China Mobile. However, Qualcomm is still not showing much leverage. We expect share count to decline in Sept for the first time in several periods. Our price target increases from $75 to $78 based on a multiple of 15x. Qualcomm’s valuation is very attractive in our view, trading at 12x CY14E EPS or a 14% discount to the S&P. CY13E EPS at $4.54; FY14E EPS at $4.99."
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 $61.39 yesterday, with a 52 week range of $56.30-$68.50.