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<Research> BofAS Raises QUALCOMM Incorporated (QCOM.US) TP to USD165, Reiterates Underperform
Recommend 5 Positive 3 Negative 1 |
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BofAS said in a research report that management of QUALCOMM Incorporated (QCOM.US) expects China QCT handset revenue to bottom out in the fiscal third quarter ending June, with shipments beginning to align more closely with end demand, supporting QoQ growth in Android QCT handset revenue in the fiscal fourth quarter ending September. However, part of the improvement will be offset by loss of iPhone order share. In addition, the company disclosed that customized chips developed with hyperscale data center customers are expected to begin shipments in fiscal 2026. The broker forecasts these projects will contribute USD750 million and USD1.5 billion in revenue in fiscal 2027 and fiscal 2028, respectively. Nevertheless, competition in the data center XPU market is intensifying, and data center programs may take years to become a meaningful revenue contributor for the company. BofAS reiterated its Underperform rating on QUALCOMM Incorporated, citing that prospects in automotive and IoT may not be sufficient to offset Apple order losses and headwinds in the China Android market. The broker trimmed its GAAP EPS forecasts for fiscal 2026 and fiscal 2027 by 4% and 5%, respectively. However, considering that hyperscale data center customization projects could become a key growth driver in the future, it raised the target valuation multiple to 15x 2027 PE (previously 13x), lifting the TP to USD165 from USD145. (ss/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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