The chipmaker’s shares jumped as it received an upgraded rating from Bernstein.
The past few quarters have been rather deleterious for Qualcomm Inc. as usually the chipmaker has been able to post upbeat earnings but poor guidance for the upcoming quarter which has gotten the shareholders rather concerned for the company. The investors and shareholders of the chipmaker have become quite pessimistic towards the stock of the company.
The pessimism has not really worked out for the best as it has still failed to attract its investors. In order to attract and convince investors, the company recently had an analyst day as well; during this day it tried to convince its shareholders, advisors that the company is likely to have a positive future – in the long run.
Numerous analysts from different research and financial services firm including Pacific Crest had a lot of positive things to say at the event; during the course of this analyst day, the company’s management talked about the growth of its QTL Business and also mentioned that in the upcoming years it will be able to generate as much as $10 billion revenue. There had been an investigation going on regarding certain misconceptions on the Korea Fair Trade Commission which it justified and clarified to the investors, shareholders and advisors as well.
After a long period of time analysts at Bernstein has finally decided to upgrade the stock of the company; as per the reported shared the stock of the chipmaker giant has been upgraded to Outperform which had an initial rating of Perform and furthermore increased the target price on the shares of the chip manufacturing company as well to $55 while initially the target price was at $50.
This upgrade in the rating of the stock occurred mainly due to two reason; first being that KFTC has confirmed that the recent case going on has nothing to do with royalties that are being charged and second, that all the technology companies including Qualcomm Inc. will be affected by the saturating market especially that of China.
As per the case going on, the organization they carried out their last amortization worth $400 million till the contract with Nokia ends in 2020. In comparison to the deteriorating market, analysts at this point believe that the chipmaker is doing fairly better than the others. Furthermore, analysts are also pointing out a number of other things that need to be looked at one being the deteriorating market and secondly they believe that the current year could be a transitional year, so such optimism might be a bit too much for the company right now.
Qualcomm stock is being traded at a share price of $49.08 presently indicating an upside of $1.38%.