Qualcomm Inc (NASDAQ: QCOM) has already gained close to 35% in less than three months but a Citi analyst is convinced that it’s not out of juice just yet.
Qualcomm stock has upside to $160Christopher Danely upgraded the semiconductors behemoth this morning to “buy”. His $160 price objective suggests another 15% upside from here.
The analyst is bullish on Qualcomm stock because he expects the company to report upbeat results for its fiscal fourth quarter in early February and issue solid guidance for the future.
We believe the inventory replenishment in the handset end market should benefit both revenue and margins at Qualcomm.
Consensus is for Qualcomm Inc to earn $1.90 a share in its current financial quarter versus $1.93 per share a year ago.
Watch here: https://www.youtube.com/embed/NSLmpFskWkI?feature=oembedQualcomm could win share at SamsungChristopher Danely recommends owning Qualcomm stock also because he’s convinced that the multinational will “gain share at Samsung” moving forward.
The Citi analyst expects the aforementioned replenishment “to continue at least through 1Q24”.
On Friday, he also raised his F24E estimates for per-share earnings and revenue to $8.16 and $38.5 billion, respectively. Danely’s previous forecast was for $7.61 a share of earnings and $37.5 billion in revenue.
In F25E, he now forecasts Qualcomm to earn $9.29 a share on $41 billion in revenue. Note that $QCOM does also pay a dividend yield of 2.30% at writing which makes up for another good reason to have it in your portfolio.
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