Qualcomm upgraded to Buy from Hold at Loop Capital

Loop Capital upgraded Qualcomm (QCOM) to Buy from Hold with an $185 price target. Year-to-date share price underperformance has been “fueled by a perfect storm of circumstances,” but memory chips won’t remain in short supply forever and the smartphone market should recover and normalize from the initial shock, the analyst tells investors. By this time next year, Qualcomm’s chip shipments to Apple (AAPL) will be on pace to be less than 10% of total revenue and investors will feel more confident in the scenario whereby FY29 Automotive and IoT sales approach or eclipse Handset sales for the first time, signaling a “milestone” in Qualcomm’s diversification path, the analyst added.