In a research report published late Thursday, BMO Capital analyst Tim Long downgraded shares of QUALCOMM, Inc. (NASDAQ:QCOM) from Market Perform to Underperform, with a price target of $50, as he sees negative catalysts on the horizon for the chip maker. In pre-market trading, QCOM is down 1.18% to $54.23.

Long stated, “Although the dividend and cash flow yields are providing some support, we see three negative catalysts coming. (1) We expect a meaningful guide down for the September quarter, mostly in the licensing business. We are $0.10 below consensus for September quarter EPS, excluding any potential catch-up payments. (2) We believe management guidance for 3G/4G unit growth this year is too aggressive at 5-11%, which is well above our 2% view. Our longterm TRDS growth rate is now 0.5%, well below management guidance of 5- 7%. We believe management and consensus will be lowering numbers for a while. (3) Following two years where chip market share fell by 900 bp each year, we expect further losses in FY 2017. We believe Intel’s win at Apple and Mediatek’s potential entry into Samsung could further pressure QCT margins.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tim Long has a yearly average return of 4.5% and a 54.5% success rate. Long has a -6.3% average return when recommending QCOM, and is ranked #809 out of 4060 analysts.

Out of the 30 analysts polled by TipRanks, 14 rate Qualcomm stock a Buy, 15 rate the stock a Hold and 1 recommends Sell. With a return potential of 10%, the stock’s consensus target price stands at $60.18.