Qualcomm shares fall due to gloomy prospects
2022.12.12 08:29
Qualcomm shares fall due to gloomy prospects
Budrigannews.com – Qualcomm shares (NASDAQ:) are down more than 2.3 percent in the pre-market Monday following the Wells Fargo analysts’ downgrade from Equal Weight to Underweight.
Additionally, they reiterated their target price of $105 per share for QCOM stock, implying a risk of nearly 12% below Friday’s closing price. Following the analysts’ cut of Qorvo (NASDAQ:), the downgrade to QCOM likewise Skyworks in October to reflect investor discontent with the chip industry.
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In a client note, they stated that “we believe shares of companies w/high smartphone exposure should underperform the broader chip sector” until “investors are convinced we’ve reached a trough in the chip cycle.”
Additionally, they believe that QCOM operates in a “no-growth mobile handset market” and that “investors may begin to value QCOM shares based on EPS power ex.” shipments of MSM/RFFE to AAPL (our estimated FY25 assumes a lower AAPL QCT revision).”
In addition, the analysts are not particularly optimistic about Qualcomm’s mid-term prospects, stating that the company’s success beyond the iPhone 16 is contingent on the high-end Android smartphone community, “which may not be the best exposure to have.”
Qualcomm stock is down almost 35% year-to-date.
