Bernstein notes that on Friday, the Wall Street Journal reported that Qualcomm (QCOM) had supposedly made a takeover approach to Intel (INTC) in recent weeks. The firm says that it “could of course construct a rationale,” but it “REALLY struggles with the fabs.” Intel is having enough trouble with them on its own, and Bernstein doesn’t know why Qualcomm would be a better owner for those assets. Overall, the firm says it is hard for it to see a deal working out financially with acceptable risk if the fabs are included. “We’ll be honest, we would prefer that Qualcomm not pursue this as it seems very risky to us given uncertain returns,” Bernstein says. The firm has an Outperform on Qualcomm and a Market Perform on Intel shares.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on QCOM:
- Qualcomm, Intel deal on PCs/datacenter would make strategic sense, says JPMorgan
- Apollo to offer multibillion-dollar investment in Intel, Bloomberg says
- Intel’s (NASDAQ:INTC) Stock Jumps on Reports of Takeover Approach from Qualcomm
- Intel rises, Qualcomm falls after WSJ report of takeover approach
- Qualcomm approached Intel about potential takeover, WSJ reports
Looking for a trading platform? Check out TipRanks' Best Online Brokers , and find the ideal broker for your trades.
Report an Issue