Qualcomm Inc (QCOM)

[khemara_qc]

Motorola Could Gain On Global Handset Upside
03.22.05, 9:51 AM ET

http://www.forbes.com/markets/2005/03/22/0322automarketscan03.html?partner=yahoo&referrer=

Banc of America Securities upgraded Motorola (nyse: MOT - news - people ) to "buy" from "neutral," saying the company's near-term outlook appears better than data suggest. "We acknowledge recent negative data points, but believe the impact is overstated," the research firm said. "We think global handset numbers will surprise and Motorola will be a key beneficiary." Banc of America said customers in the U.S. and China, which represent approximately 40% of Motorola's equipment sales, are increasing spending in the near-term, which could lead to upside. Based on improved handset outlook, the research firm raised the 2005 and 2006 earnings-per-share estimates on Motorola to 93 cents and $1.03, from 87 cents and 92 cents, respectively. The research firm also reiterated a $20 target price on Motorola. Banc of America said Motorola's current valuation appears compelling, with the stock "trading below its historic averages and at a discount to the market, despite a vastly improved balance sheet." The research firm's top picks in the wireless equipment sector are Nokia (nyse: NOK - news - people ) and Qualcomm (nasdaq: QCOM - news - people ), both rated at "buy" with respective target prices of $20 and $49. Its least favorite picks are Ciena (nasdaq: CIEN - news - people ) and Lucent Technologies (nyse: LU - news - people ), both rated at "neutral" with respective target prices of $2.50 and $3.50.