Cody Acree, an analyst from Benchmark Co., reiterated the Buy rating on Qualcomm. The associated price target remains the same with $200.00.
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Cody Acree has given his Buy rating due to a combination of factors including Qualcomm’s strong execution on its diversification strategy and its attractive valuation. Despite concerns about the impact of losing Apple’s business, Qualcomm has effectively communicated these challenges to investors, allowing the market to adjust its expectations accordingly. The company’s growth in the automotive and IoT sectors, with significant contributions to revenue, demonstrates its successful pivot towards new opportunities.
Additionally, Qualcomm’s strategic focus on AI-centric solutions and its entry into the Data Center market are expected to drive long-term growth. The acquisition of Alphawave enhances its capabilities in Data Center connectivity, further supporting its expansion plans. Qualcomm’s strong partnerships with companies like Samsung and Xiaomi also bolster its position in the smartphone market. With a current valuation that is significantly lower than its peers, Acree believes there is a disconnect between Qualcomm’s market price and its fundamental strengths, justifying the Buy rating and a price target of $200.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $200.00 price target.