Qualcomm "overweight," target price reduced - update

21.07.06 - Prudential Financial

NEW YORK, July 21 (newratings.com) - Analyst Inder M Singh of Prudential Financial maintains his "overweight" rating on Qualcomm Inc (QCOM), while reducing his estimates for the company. The target price has been reduced from $57 to $50.

In a research note published yesterday, the analyst mentions that the company has reported its F3Q06 revenues and EPS in-line with expectations. Qualcomm expects a marginal rise in its inventories in India and China, with the impact on revenues restricted to $15-$20 million, the analyst says. The rise in handset channel inventories is unlikely to impact the company's QTL division, Prudential Financial adds. The EPS estimate for 2006 has been reduced from $1.72 to $1.69.