Top Analyst Reiterates Upbeat View of Qualcomm (QCOM) Following a Fireside Chat with President Cristiano Amon


Canaccord’s top analyst Michael Walkley is out today with a research note on shares of Qualcomm (NASDAQ:QCOM), after hosting an upbeat discussion with president Cristiano Amon at the 38th Annual Canaccord Growth Conference.

Highlights of the discussion included QCT share gains with premium tier Android smartphone OEMs; leadership position in modem technologies including 5G; strong adjacent market growth opportunities including automotive, IoT, and RF; and strong long-term growth drivers that should drive market share and margin expansion opportunities.

Walkley stated, “We believe Qualcomm is on track to achieve its $5.25 in F2019 non-GAAP EPS excluding settling licensing disputes, and we view the recent partial payments from Huawei as a positive step towards a long-term deal with this leading smartphone OEM. Despite the licensing disputes with Apple and Huawei, we believe Qualcomm is an attractive investment opportunity for longer-term investors, as we believe Qualcomm will eventually settle its disputes with these two leading smartphone OEMs and earnings should ramp in 2019 helped by the buyback and 2020 and beyond as 5G should enable Qualcomm to gain market share and improve QCT margins. With Qualcomm announcing a “modified Dutch auction” tender offer to purchase up to $10 billion of shares of its common stock by August 27, we believe our estimates could prove conservative as we have conservatively assumed the $30B buyback happens over the course of the next 5 quarter.”

As such, Walkley reiterates a Buy rating on Qualcomm shares, with a price target of $81, which represents a potential upside of 24% from where the stock is currently trading.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Walkley has a yearly average return of 17% and a 63% success rate. Walkley has a 1.3% average return when recommending QCOM, and is ranked #99 out of 4850 analysts.

The Street largely seems to echo Walkley’ positive stance, considering TipRanks analytics showcase QCOM as a Buy. Out of 13 analysts polled in the last 3 months, 8 are bullish on Qualcomm stock, 4 remain sidelined, and 1 is bearish on the stock. With a potential upside of nearly 5%, the stock’s consensus target price stands at $68.36. 

 

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