Following the shut immediately, Qualcomm (QCOM) will take middle stage and announce the December quarter’s (F1Q22) outcomes. If for some purpose you might be about to wager in opposition to the chip large delivering the products, then J.P. Morgan’s Samik Chatterjee would advise you to suppose once more.
Based on current earnings studies from Mediatek – which evinced “strong momentum in 5G smartphone adoption and upside through content growth opportunities,” – and Apple’s blowout earnings which being Qualcomm’s largest buyer bodes properly for each QCT and QTL, the analyst believes the “setup is favorable.”
Overall, Chatterjee’s expectations are marginally above the Street’s; Chatterjee is asking for F1Q revenues of $10.6 billion, whereas consensus has $10.4 billion and the information requires $10-$10.8 billion. For EPS, Chatterjee has $3.03 vs. consensus at $3.00 and QCOM’s $2.90-$3.10 information.
So, an optimistic tone from Chatterjee. That stated, whereas many have dialed down expectations in current occasions when offering an outlook, the analyst has an much more bullish take when contemplating the present March quarter (F2Q22).
Chatterjee forecasts a sequential drop of simply 7%, in comparison with the seasonal drop of 12% traditionally for the smartphone market generally (and peer Skyworks). The 5-star analyst thinks the corporate will have the ability to buck the conventional seasonal development of income moderation by demonstrating the “benefits of its diversification relative to other smartphone chipset suppliers.” A mixture of “supply chain easing, share gains with android customers, favorable pricing trends, as well as growth drivers from non-smartphone end-markets” will enable Qualcomm to generate above-seasonal and better-than-expected income in F2Q22.
In reality, Chatterjee highlights Qualcomm’s “inexpensive valuation” and sees the inventory as a “top pick.” That designation comes with an Overweight (i.e., Buy) ranking and $225 worth goal. The determine suggests shares have room for 27% progress within the 12 months forward. (To watch Chatterjee’s observe file, click on right here)
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Not everybody on the Street is sort of as bullish; the inventory ekes out a Moderate Buy consensus ranking, based mostly on 12 Buys vs. 9 Holds. The forecast requires 12-month positive aspects of 12%, contemplating the typical worth goal is available in at $198 and alter. (See Qualcomm inventory forecast on TipRanks)
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Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is essential to do your individual evaluation earlier than making any funding.