Tal Liani, an analyst from Bank of America Securities, maintained the Buy rating on Qualcomm (QCOM – Research Report). The associated price target remains the same with $245.00.
Tal Liani has given his Buy rating due to a combination of factors including Qualcomm’s robust revenue growth, particularly in the QCT segment, which outperformed market expectations. Despite some short-term margin pressures due to a shift in product mix towards new semiconductor areas, Liani views this as a positive long-term development, anticipating margin recovery as these segments mature. Additionally, Qualcomm’s IoT market is showing signs of positive inflection, with revenues significantly surpassing expectations, driven by strength in Industrial IoT.
Moreover, Qualcomm’s automotive segment remains a strong growth area, with substantial year-over-year increases and continued demand for connectivity solutions. Although there are risks associated with slowing growth in China and competition from Mediatek, Qualcomm’s strong position in premium handsets, particularly with major Android OEMs and recovering market share in Samsung’s Galaxy devices, supports the Buy rating. The company’s strategic wins in new OEM designs and confidence in meeting long-term targets further bolster the positive outlook.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $190.00 price target.