Bernstein Reiterates Outperform Rating on Qualcomm (QCOM)

Bernstein SocGen Group analyst Stacy Rasgon reiterated an Outperform rating and $185.00 price target on Qualcomm (NASDAQ: QCOM).

The analyst commented: "Qualcomm remains heavily out of favor amid general distaste of smartphones, tariff concerns, near-term muted numbers (AAPL rolloff etc). And we get it, with concerns over (similar to other markets) tariff-related pullfoward, AAPL declines about to kick off muting earnings growth over the next several years, a likely general lack of near-term visibly from management especially with 232 tariffs coming soon (likely sometime in the next few weeks so we shall see how they guide with them on the way) and a general lack of catalysts for now. And yet, we still believe there is value to be had under the surface, with an objectively strong product portfolio and an adjacency story that looks increasing real (with option value to boot) that should become more and more obvious as AAPL winds out of the numbers over time. Perhaps there is no rush to get involved (yet) but valuation reflects this with the stock at a >40% discount to the S&P and a 50% discount to the SOX); ex-AAPL we believe the company could grow earnings double-digits (for which you are paying only ~15-16x); Catalyst or not, it seems a worthwhile name to keep on your back burner at least. Outperform, $185 PT."

For an analyst ratings summary and ratings history on Qualcomm click here. For more ratings news on Qualcomm click here.

Shares of Qualcomm closed at $158.40 yesterday.

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