Canaccord top analyst Michael Walkley is out with a research report on shares of QUALCOMM, Inc. (NASDAQ:QCOM) on the heels of the Samsung Galaxy Note 7 explosive fiasco, resulting in discontinuation of production. In reaction, the analyst is decreasing Mobile Station Modem (MSM) chip projections for the upcoming quarters as the chipmaker giant administers the higher ASP Snapdragon 820 for the smartphone.

Despite the Samsung setback, Walkey remains bullish on the company’s bigger picture and therefore reiterates a Buy rating on QCOM while raising the price target from $70 to $75, which represents an almost 14% increase from where the shares last closed.

“We believe Qualcomm’s strong QCT roadmap is driving improving Android share and margins, particularly with the Snapdragon 600 and 400 families. We believe these trends will continue as leading Chinese OEMs continue to consolidate market share and utilize more of Qualcomm’s higher-end solutions versus the competition as these OEMs expand into international markets. Overall, we believe QCT is gaining higher-end Android market share and QTL is returning to growth with stronger collections and new growth from adjacent market opportunities,” Walkley concludes.

Additionally, bolstered by his belief that an acquisition of NXP Semiconductors NV (NASDAQ:NXPI) has real possibility to come to fruition, the analyst contends this ” would provide a strong use of offshore cash and diversify Qualcomm into important automotive and IoT markets,” and be ultimately positive for the giant.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Michael Walkley has achieved a high ranking of #30 out of 4,182 analysts. Walkley upholds a 61% success rate and garners 14.9% in his yearly returns. When recommending QCOM, Walkley gains 6.8% in average profits on the stock.

TipRanks analytics demonstrate QCOM as a Buy. Based on 20 analysts polled in the last 3 months, 11 rate a Buy on QCOM, 8 maintain a Hold, while 1 issues a Sell. The consensus price target stands at $65.80.