QUALCOMM Named One of the Best 5G Stocks with $180 Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Yahoo Finance
- Neutral Rating Maintained: Citi reiterated its Neutral rating on QUALCOMM on January 15, setting a price target of $180, indicating that the stock is currently trading above historical valuation levels, reflecting market caution regarding its future growth.
- Coverage Initiation and Underperformance: RBC Capital initiated coverage on QUALCOMM on January 14 with a Sector Perform rating and a price target of $180, highlighting that the stock has lagged the SOX semiconductor index over the past year due to weak smartphone market growth and Apple's in-sourcing of modems.
- Muted Growth Expectations: RBC Capital expects QUALCOMM's revenue growth to remain muted over the next two years, noting that while the recent AI accelerator product announcement shows potential, it may take time to translate into meaningful revenue, indicating market concerns about its short-term outlook.
- Reasonable Valuation and Cash Returns: Despite challenges, RBC Capital views QUALCOMM's valuation as reasonable at around 14x P/E and emphasizes the company's solid cash returns, showcasing its fundamental strengths in an uncertain market.
Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QCOM is 197.14 USD with a low forecast of 165.00 USD and a high forecast of 225.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 157.800
Low
165.00
Averages
197.14
High
225.00
Current: 157.800
Low
165.00
Averages
197.14
High
225.00
About QCOM
Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
