Qualcomm "overweight," estimates raised

14.06.06 - Prudential Financial

NEW YORK, June 14 (newratings.com) - Analyst Inder M Singh of Prudential Financial reiterates his "overweight" rating on Qualcomm Inc (QCOM), while raising his estimates for the company. The target price is set to $57.

In a research note published yesterday, the analyst mentions that the company is witnessing better-than-expected WCDMA demand and higher ASPs. Qualcomm has raised its revenue and EPS guidance for F3Q06 from marginally above $1.87 billion to $1.91- $1.96 billion and from $0.38-$0.40 to $0.41-$0.42. The company is well positioned to capitalise on the 3G upgrade cycle going forward, the analyst adds. The EPS estimate for 2006 has been raised from $1.42 to $1.45.