Qualcomm (NASDAQ:QCOM) Balance Sheet Strengthened After FLO TV Spectrum

While not a surprise, the sale of Qualcomm's (NASDAQ:QCOM) FLO TV spectrum to AT&T (NYSE:T) has boosted the balance sheet of Qualcomm.

Barclays noted, "This AM we highlight the disposal of FLO TV spectrum for $1.925 billion and our recent checks on wireless innovator Qualcomm. Although widely anticipated, the $1.925-billion sale of FLO TV spectrum to AT&T further bolsters QCOM's balance sheet and signals an end to the loss making FLO TV business, which held $746 million in nationwide 700MHz spectrum licenses. QCOM expects that the FLO TV business and network will be shut down in March CY11...Recent Asia Checks Suggest Solid 4Q Trends & March Quarter Outlook...For CY10, we estimate revenue of $11.4 billion and EPS of $2.55, and $12.8 billion and $2.80in CY11. Our price target remains $55, or 20x CY11 EPS of $2.80."

Barclays maintains an "Overweight" on Qualcomm, which closed Tuesday at $49.99, up $0.55, or 1.11 percent. Barclays has a price target on them of $55.