Canaccord Reiterates Buy on Qualcomm, Inc. (QCOM) Following Global Growth Conference
In a research report issued yesterday, Canaccord analyst Michael Walkley reiterated a Buy rating on shares of Qualcomm, Inc. (NASDAQ:QCOM) with a $75 price target, after the Company’s Executive Vice President and CFO George Davis participated in a “fireside chat” Q&A session and conducted investor meetings at the Canaccord Genuity Global Growth Conference in Boston.
Walkley wrote, “Despite soft overall June quarter smartphone sales and disappointing QCT execution, we believe Qualcomm will take the steps necessary to return the company to improved earnings growth and create shareholder value. While we anticipate nearterm challenges will impact Q4/F2015 results consistent with management’s recent disappointing guidance, we anticipate gradually recovering earnings growth in F2016 primarily due to the announced $1.4B cost savings program, improved QTL licensing collections from Chinese OEMs with the potential for catch-up payments, and a lower share count.”
“We believe Qualcomm’s announced cost reductions and the overall significant capital returns program combined with the stock’s current valuation is attractive for longer-term value investors.” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst T. Michael Walkley has a total average return of 18.7% and a 59.8% success rate. Walkley has a 3.9% average return when recommending QCOM, and is ranked #22 out of 3736 analysts.
Out of the 35 analysts polled by TipRanks, 22 rate Qualcomm stock a Buy, 12 rate the stock a Hold and 1 recommends Sell. With a return potential of 23%, the stock’s consensus target price stands at $76.39.