Oppenheimer Sticks to Its Hold Rating for Qualcomm Inc (QCOM)

By Austin Angelo

Oppenheimer analyst Rick Schafer maintained a Hold rating on Qualcomm Inc (QCOMResearch Report) today. The company’s shares closed yesterday at $86.37, close to its 52-week high of $88.63.

Schafer said:

“QCOM reported F2Q (Mar) earnings Wednesday. Sales/EPS of $4.88B/$0.77 (aided by a $100M catch up payment) topped consensus $4.8B/$0.71. On a like-for-like basis, mgmt guided F3Q (June) to $5.1B/$0.75 excluding a one-time payment from Apple. GM declined 200bps Y/Y to 57.7%. Some investors may be disappointed by lower QCT and QTL Q/Q margin outlook following Apple settlement. Mgmt again lowered outlook for 2019 global handset by 50M to 1.85B units, a number we find ambitious. Mgmt stated Apple in the model drives incremental $2.00 EPS in FY21. We believe settlement likely centers on Apple’s desire for a 5G iPhone in 2020. Shares re- rated immediately following settlement and appear fairly valued to us given softening outlook for handsets and various outstanding regulatory issues. We remain sidelined.”

According to TipRanks.com, Schafer is a top 100 analyst with an average return of 16.8% and a 72.7% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Texas Instruments.

Qualcomm Inc has an analyst consensus of Moderate Buy, with a price target consensus of $87.81, representing a 1.7% upside. In a report issued on April 29, Deutsche Bank also upgraded the stock to Hold with a $90 price target.

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Qualcomm Inc’s market cap is currently $104.5B and has a P/E ratio of 54.66. The company has a Price to Book ratio of 28.89.

Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of QCOM in relation to earlier this year.

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