Qualcomm "buy," target price raised - update

23.01.06 - Banc of America

NEW YORK, January 23 (newratings.com) - Analyst Tim Long of Banc of America Securities reiterates his "buy" rating on Qualcomm (QCOM). The target price has been raised from $52 to $54.

In a research note published on January 20, the analyst mentions that recent checks indicate that the company?s WCDMA shipments during the December quarter were significantly ahead of the estimates. Qualcomm?s WCDMA sales are likely to have benefited from the 3G network expansion in Europe, the analyst says. According to Banc of America Securities, the company has the potential to post its WCDMA shipments ahead of the higher-than-consensus estimates for FY06 and FY07, since the estimates assume flat WCDMA chipset share. The EPS estimates for FY06 and FY07 have been raised from $1.55 to $1.57 from $1.80 to $1.82, respectively.