Is Qualcomm (QCOM) Stock a buy between antitrust issues, LG Deal and Trade War?



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<p class = "canvas-atom text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Qualcomm (QCOM) recently concluded an agreement with LG Electronics to license the use of 5G technology to the handset manufacturer. Although the agreement did not send any skyrocketing actions, it reinforced the idea that Qualcomm was the leader of 5G, which should become more widespread in the coming years. In addition, as a reminder, the company has recently reached an agreement with Apple, its rival, to develop 5G technology on iPhone. "Data-reactid =" 11 "> Qualcomm (QCOM) recently concluded an agreement with LG Electronics to license the use of 5G technology to the handset manufacturer. Although the agreement did not send any skyrocketing actions, it reinforced the idea that Qualcomm was the leader of 5G, which should become more widespread in the coming years. In addition, as a reminder, the company has recently reached an agreement with Apple, its rival, to develop 5G technology on iPhone.

However, the main concern of many investors is the recent antitrust decision against Qualcomm. Judge Lucy Koh said that "the company's licensing practices have strangled competition …" and caused harm to competitors and consumers. She said the company needed to change its business practices, including renegotiating license agreements.

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" While many investors are moving away from Qualcomm for now, Morgan Stanley James Faucette is diving. The 5-star analyst maintained the overweight rating of the QCOM, with a target price of $ 89, which represents an increase of more than 20% from current levels. Morgan's James Faucette is currently diving into Qualcomm. The 5-star analyst maintained the overweighting of the QCOM title, with a target price of $ 89, which implies an increase of more than 20% from current levels.

The analyst says that "most existing agreements, including the new deal with LG, are largely consistent with this decision," and that the LG agreement shows that this decision is "largely irrelevant for Qualcomm's ability to collect royalties and for the underlying economic situation "of the company. Business.

However, Faucette does not see the LG deal as a major victory. He believes that the agreement is "encouraging" and considers it as "an additional validation … that the FTC case does not weigh on the opinion of investors", but does not change its estimates nor does it increase its price target.

For Faucette, the biggest obstacle is the US-China trade war. The analyst does not think that Huawei will pay royalties to Qualcomm if a broader trade deal is not concluded, which, without being a major revenue generator, is important for the company, because As much as Huawei continues to increase its market share in China.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Overall, Wall Street does is not yet convinced by This chip giant, but cautious optimism reigns, while TipRank Analytics presents QCOM as a moderate buy On the basis of 15 analysts surveyed over the last 3 months, 5 stock rates of Qualcomm at purchase, 9 retain a posture, while only one recommends to sell.The 12-month average price target set at 78.36 USD, an increase of 39, about 7% compared to the current market.See QCOM's price targets and analyst ratings on & nbsp; TipRanks.) "data-reactid =" 25 "> Overall, Wall Street is not yet convinced by this chip giant, but a cautious optimism reigns, while TipRanks Analytics presents QCOM as a moderate buy.On the basis of 15 analysts polled in the last 3 months., 5 rates Qualcomm stock to buy, 9 maintain a reservation, while 1 only recommends selling.The goal of 12-month average price stands at $ 78.36, an increase of About 7% compared to the current trading point (see Pricing Objectives and QCOM Analyst) .TipRanks evaluations)

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