Qualcomm Stock Gains After Edward Jones Upgrade to Buy
2022.07.15 17:12
Qualcomm (QCOM) Stock Gains After Edward Jones Upgrade to Buy
By Senad Karaahmetovic
Edward Jones analyst Logan Purk upgraded Qualcomm (NASDAQ:QCOM) to Buy from Hold as he believes the current share price doesn’t quite reflect the growth outlook for the chipmaker.
Moreover, Purk placed QCOM stock on the Canadian Equity Income Buy List. He believes the pullback in Qualcomm share price presents an “attractive buying opportunity.”
As far as fundamentals are concerned, the analyst believes QCOM remains “well positioned on several fronts over the longer term.”
“The company is the industry leader in 5G technology and will participate in the global adoption of 5G handsets. The company also sells chips for connected devices and automobiles, which should support higher growth than the handset market and provide diversification. Qualcomm’s high-profit-margin licensing business generates strong and stable cash flow and increases the financial flexibility of the company. Following several settlements and legal wins has increased our confidence in the licensing business,” Purk wrote in a client note.
The analyst highlighted Qualcomm’s ability to win a greater share of new content in the premium smartphones market, especially on Android devices.
On the valuation front, Purk notes that shares have already priced in the “potential for a slowdown in the company’s business.”
Again, the analyst recommends owning QCOM stock for long-term investors.
