Qualcomm Inc (QCOM)

[khemara_qc]

Qualcomm Set For Better Second Half
01.20.05, 9:09 AM ET


Banc of America Securities maintained a "buy" rating and $49 target price on Qualcomm (nasdaq: QCOM - news - people ), saying fiscal first-quarter results "were mostly in-line with our views, but March guidance was weak based primarily on lower handset shipments." The research firm lowered the fiscal 2005 earnings-per-share estimate on Qualcomm to $1.17 on revenue of $6.0 billion, from earnings of $1.22 per share on revenue of $6.1 billion. Banc of America said it sees a better second half for Qualcomm based on higher average selling prices and chipset gains. "We see Qualcomm as a core technology holding since there is a clear secular driver that is leading to accelerating earnings-per-share growth," Banc of America said. The research firm said it views the current weakness in the stock as a buying opportunity and reiterated the fiscal 2006 earnings-per-share estimate of $1.54 on revenue of $7.6 billion. In the wireless equipment sector, Banc of America's top picks are Qualcomm and Nokia (nyse: NOK - news - people ), which is rated at "buy" with a $18 target price. Its least favorite picks are Ciena (nasdaq: CIEN - news - people ) and Lucent Technologies (nyse: LU - news - people ), both rated "neutral" with target prices of $2.50 and $3.50, respectively.




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