Analysts at Nomura and Cowen expect Qualcomm (NASDAQ:QCOM) to report solid earnings next week, but there appears to be some concern over guidance for the current quarter, as uncertainty surrounds existing market conditions.
Nomura analyst Sidney Ho noted, “We expect Qualcomm to report a strong quarter next week, driven by growing 3G adoption, share gains in wireless and Apple. While Qualcomm is clearly well positioned, we foresee pockets of inventory in handsets, lower ASPs and weak tablet sales pressuring the stock during the next six months. As such, we maintain our Neutral rating and $51 price target based on 17x CY11E EPS of $3.00.”
Cowen & Co. analyst Matthew Hoffman said, “We expect a strong March quarter report; however, market conditions have clouded somewhat in our most recent checks and we now see the company being more cautious with its F3Q11 (June) outlook,” he wrote. “We still see multiple longer-term drivers for QCOM shares: (1) QCOM’s Android traction is growing with more high-ASP Snapdragon tablet wins on deck, (2) likely Apple wins drive better chip volumes over the next several quarters, (3) Nokia likely begins buying Snapdragon chips for its Windows Phone 7 portfolio before YE11, and (4) Windows 8 on ARM will open up the low tiers of the notebook PC market to QCOM in FY12. On that basis we would add to positions on weakness; we see QCOM shares appreciating 30% rel. to market over next 12 months.”
Qualcomm was trading at $53.27, up $0.67, or 1.27 percent, as of 1:10 PM EDT.
Friday, April 15, 2011
Qualcomm's (QCOM) Earnings Preview Mixed from Nomura, Cowen
Labels:
Cowen and Co,
Nomura Securities,
Qualcomm
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