Citi analyst Christopher Danely maintained a Hold rating on Qualcomm today and set a price target of $170.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Christopher Danely has given his Hold rating due to a combination of factors impacting Qualcomm’s performance. Firstly, while Qualcomm reported results that exceeded market expectations, this was largely driven by the strength in its IoT segment. However, the company’s guidance for the next quarter fell short of typical seasonal growth patterns, primarily due to Apple’s ongoing transition away from Qualcomm’s modems, which is expected to pressure the company’s earnings.
Additionally, Danely notes that the anticipated handset upgrade cycle, which could potentially boost Qualcomm’s performance, is not expected to occur for at least another year. This delay, coupled with the impact of Apple’s shift to internal modems, contributes to the decision to maintain a Neutral stance. Despite raising revenue and EPS estimates for the coming fiscal years, the potential headwinds from Apple’s transition and the lack of immediate catalysts for growth justify the Hold rating.
Danely covers the Technology sector, focusing on stocks such as Microchip, Advanced Micro Devices, and Intel. According to TipRanks, Danely has an average return of 10.3% and a 62.26% success rate on recommended stocks.