Nomura Securities increased its price target for telecommunications company, Qualcomm(QCOM) on Tuesday.
The firm has reaffirmed its “Outperform” rating on the company, and have increased its price target from $70 to $75. This price target suggests a 17.8% increase over the stock’s current price of $61.62.
An analyst from the firm commented, “Qualcomm shares traded up on earnings last week as concerns over the chipset business (QCT) proved overblown,” analyst Romit Shah comments. “That said, we believe the market is underestimating substantial growth from licensing (QTL) over the next two years, driven by higher 3G subscriber penetration in the emerging markets. We estimate that for every 1% increase in emerging market 3G penetration increases EPS by $0.15.”
Qualcomm shares were mostly flat during premarket trading Tuesday. The stock is up 12.65% YTD.
The Bottom Line
Shares of Qualcomm (QCOM) have a 1.62% dividend yield, based on last night’s closing stock price of $61.62. The stock has technical support in the $57-$58 price area. If the shares can firm up, we see overhead resistance around the $64-$65 price levels.
Qualcomm(QCOM)is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.