Qualcomm Inc (QCOM)

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Qualcomm "perform," estimates raised

Monday, May 17, 2004 5:46:06 AM ET
Loop Capital


NEW YORK, May 17 (New Ratings) – Analysts at Loop Capital maintain their "perform" rating on Qualcomm Inc (QCOM.NAS), while raising their estimates for the company. The target price is set to $70.

Qualcomm Inc develops and delivers digital wireless communication products and services based on the CDMA technology.

According to Loop Capital’s research note published on May 14, Qualcomm intends to resolve its recent supply constraints by making adequate arrangements for chip manufacturing capacities. The company does not plan to invest in establishing in-house manufacturing facilities, the analysts mention. The company’s research and development expenses are, however, expected to continue to increase over the next couple of years, the analysts add.

Qualcomm expects further growth in its CDMA business and has identified the North American, South Korean, Japanese and Western European regions as the near-term growth drivers. According to Loop Capital, the company’s royalty revenue from WCDMA would increase in the near future. Qualcomm’s growth prospects are fully reflected in the company’s current stock valuation, the analysts mention.

The EPS estimates for FY04 and FY05 have been raised from $2.00 to $2.06 and from $2.13 to $2.19, respectively. The P/E estimate for FY05 is 29.4x.

Loop Capital maintains its "perform" rating on Qualcomm.

© 2004 New Ratings

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