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Qualcomm’s Strategic Positioning and Diversification Drive Buy Rating Despite Challenges

Qualcomm’s Strategic Positioning and Diversification Drive Buy Rating Despite Challenges

In a report released yesterday, Joshua Buchalter from TD Cowen maintained a Buy rating on Qualcomm (QCOMResearch Report), with a price target of $195.00.

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Joshua Buchalter has given his Buy rating due to a combination of factors surrounding Qualcomm’s recent performance and future prospects. The company delivered a solid set of results with record handset revenue, surpassing expectations across its QCT segments. This success is attributed to higher shipment volumes and improved pricing strategies, particularly due to the advanced functionality of its Snapdragon SoC platform, which has strengthened its market presence, especially in collaboration with Samsung’s flagship devices.
Despite some concerns, such as the conservative exclusion of Huawei royalty revenue from QTL guidance, which may dampen investor enthusiasm, Qualcomm’s growth in IoT and Automotive sectors remains robust. The absence of an agreement with Huawei introduces some uncertainty, but the impact on earnings is expected to be mild. Furthermore, while the anticipated reduction in Qualcomm’s share with Apple due to their internal modem development poses a challenge, the company’s diversification efforts and overall strategic positioning support the Buy rating.

In another report released on February 3, Bernstein also maintained a Buy rating on the stock with a $215.00 price target.

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