Stock Update: Qualcomm Incorporated (NASDAQ:QCOM) – Qualcomm Still A Buy On Cost Controls, Growing Margins: Canaccord

[at Barrons.com] – Canaccord’s T. Michael Walkley and his team met with Qualcomm (QCOM) at the Mobile World Conference, and reiterated a Buy rating on the stock Monday, based on these and analyst day meetings with management. More detail from his note: Lenovo licensing deal another step toward QTL returning to revenue growth: With improved collections in China and lower 3-mode mix, moderating 3G/4G device ASP declines, and a stabilizing implied royalty rate at 2.9%, management anticipates QTL revenue could exceed $10B by F2020. From our MWC meetings, it is clear China is increasing its mix of both carrier aggregation and 5-mode smarpthones, and both of these trends should benefit QTL. Read more on this. QUALCOMM Incorporated (QCOM) , valued at $76.94B, started trading this morning at $51.17. Today, shares have traded between $50.71 and $51.53 per share and has traded between $42.24 and $74.09 over the past year. QCOM shares are currently priced at 12.59x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 14.95x forward p/e ratio. The company pays shareholders $1.92 per share in dividend income per year, for a current yield of 3.72%. According to a consensus of 26 analysts, the earnings estimate of $0.96 per share would be $0.44 worse than the year-ago quarter and a $0.05 sequential decrease. Investors should also note that the full-year EPS estimate of $4.10 is a $0.56 worse when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $5.33 Billion. If realized, that would be a 22.64% decrease over the year-ago quarter. In terms of ratings, Bernstein upgraded QCOM from Mkt Perform to Outperform (Feb 16, 2016). Previously, Susquehanna upgraded QCOM from Neutral to Positive. When considering if perhaps the stock is under or overvalued, the average price target is $57.64, which is 12.64% above where the stock opened this morning. See more in (NASDAQ:QCOM) Similar Articles: Stock Update: Qualcomm Incorporated (NASDAQ:QCOM) – Qualcomm’s Biggest Bear Raises Stock Estimate Stock Update: Qualcomm Incorporated (NASDAQ:QCOM) – GSK said to be in talks with Qualcomm to form JV – Bloomberg Market Update: Qualcomm Incorporated (NASDAQ:QCOM) – Apple Continues to Gobble Mobile Share, Says Canaccord; Better Luck for Qualcomm in 2016