Qualcomm Stock soars, as Goldman upgrades to buy
Qualcomm (QCOM) – Get the QUALCOMM Incorporated report stocks soared on Thursday as Goldman Sachs improved the semiconductor titan to buy neutral after a strong earnings report.
Goldman also raised its price target for the share to $ 194 from $ 162.
“We are improving Qualcomm, after it reported a strong beat and increased quarter and reported earnings per share (EPS) growth of over 20% in fiscal 2022,” wrote the Goldman analyst Rod Hall in a comment.
“The BPA growth indication is double our [previous] A forecast of 10%, as announced by Qualcomm, which expected better high-end Android momentum as well as broader positive expectations in other lines of business. “
Qualcomm stock closed at $ 156.11 on Thursday, up 13%. That leaves the stock up 21% for the last month.
“We believe that a high-end Snapdragon-based Android phone is worth around $ 60 of content plus royalties for Qualcomm compared to just $ 30 for an iPhone,” Hall said.
“This $ 30 difference does not include RFFE [Qualcomm’s RF Front End], which could also represent some increase in content for non-mmWave [millimeter Wave] devices.
“We believe high-end Android OEMs [original equipment manufacturers] are positioned to enhance high-end offerings around Lunar New Year and that this could combine with increased sourcing capability from Qualcomm to boost our model. “
Morningstar analyst Abhinav Davuluri puts the fair value at $ 144 for Qualcomm and attributes it to a narrow gap.
“Qualcomm reported better than management expected fourth quarter financial results, with the company benefiting from the continued surge in 5G smartphones and widespread demand for chips,” he wrote in a comment on Wednesday.