Shares of Qualcomm QCOM.q are up $2.04, or almost 4%, at $53.74, after Sterne Agee chip analyst Vijay Rakesh today raised his rating on the shares to Buy from Neutral, with a $62 price target, writing that some recent worries, such as Japan, have been blown out of proportion, while the company’s long-term opportunities look attractive.
“While disruptions in the supply chain could create some limited visibility into fiscal Q3 (ending in June), we believe it provides an opportunity with the pullback,” writes Rakesh.
Rakesh thinks investors are “starting to focus on a potential $3.50-4.00 earnings power over the next couple of years.” Rakesh models Qualcomm making $3.05 per share this fiscal year, and $3.37 next year.
Rakesh had been worried that Taiwanese chip maker MediaTek might be poised to take busienss away from Qualcomm, but it now appears MediaTek was actually late to market with chips in China and India, leaving opportunity for Qualcomm.
“While disruptions in the supply chain could create some limited visibility into fiscal Q3 (ending in June), we believe it provides an opportunity with the pullback,” writes Rakesh.
Rakesh thinks investors are “starting to focus on a potential $3.50-4.00 earnings power over the next couple of years.” Rakesh models Qualcomm making $3.05 per share this fiscal year, and $3.37 next year.
Rakesh had been worried that Taiwanese chip maker MediaTek might be poised to take busienss away from Qualcomm, but it now appears MediaTek was actually late to market with chips in China and India, leaving opportunity for Qualcomm.
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