Qualcomm Inc (QCOM)

[khemara_qc]

Qualcomm's 'Very Attractive' Valuation
02.24.05, 9:24 AM ET

Banc of America Securities reiterated a "buy" rating and $49 price target on Qualcomm (nasdaq: QCOM - news - people ), noting that sales of CDMA handset units worldwide are tracking "roughly in line, with 3G solid." Banc of America said, "We are encouraged that 3G units are tracking to our 8 million phone estimate for [the quarter ending] March. Our 3G model shows a doubling of units in 2005 and 2006. We see this as the key reason to own the stock, since it will drive upside in 2006." The research firm noted that Qualcomm trades at less than 20-times calendar 2006 earning per share after accounting for cash. "We see this as a very attractive multiple for a company with this margin, cash flow, and growth profile," Banc of America said. In its coverage of wireless equipment, Banc of America's top two picks are Qualcomm and Nokia (nyse: NOK - news - people ), which is rated at "buy" with a $20 price target. The firm's two least favorites are Ciena (nasdaq: CIEN - news - people ) and Lucent Technologies (nyse: LU - news - people ), both rated at "neutral" with respective price targets of $2.50 and $3.50.

http://www.forbes.com/markets/2005/02/24/0224automarketscan02.html?partner=yahoo&referrer=